When severe floods struck Valencia in late 2024, the damage quickly spread beyond the affected neighbourhoods. Infrastructure was disrupted, insurance claims surged and supply chains were hit across the region. Within days, the financial implications were clear. Events like these illustrate how sudden climate shocks can rapidly enter financial markets.
For many people, this matters more than they might think. Pension funds, insurance portfolios and long-term savings are heavily invested in companies, infrastructure and energy systems exposed to climate risk. As extreme weather events become more frequent and environmental pressures intensify, the way financial markets react to climate risks increasingly affects the economic security of savers.
