Abstract

This chapter explores the evolving role of finance in addressing global sustainability challenges. It calls for a shift away from the usual risk management approach, towards financial systems that prioritise resilience. The chapter highlights the shortcomings of current risk-based models, explores the foundational ideas of resilience in finance and looks at new practices in sustainable investment, valuation and regulation. By drawing on a mix of research and policy advancements, the chapter lays out a clear path for embedding resilience into the fabric of financial theory, practice and governance.