1in1000 is a new research program that enables financial institutions and supervisors to mitigate and adapt to future risks and challenges.
Launched by the non-profit think tank 2° Investing Initiative (2DII), 1in1000 responds to the challenge of preparing for future risks and challenges with significant long-term impacts. 1in1000 focuses on three core challenges:
Climate change
Ecosystem services & biodiversity loss
Social cohesion & resilience
To tackle these risks, 1in1000 focuses on developing long-term risk metrics, risk (management) tools & frameworks, as well as policy analysis and capacity building for financial institutions and supervisors.
The finance sector is uniquely positioned.
On the one hand, it is exposed to future challenges and risks.
1in1000 aims to address a critical gap in the financial and policy sectors, where short time horizons have prevented the integration of long-term risks into investment metrics, processes, and regulations.
On the other hand, the finance sector can also contribute to reducing these risks.
01
Ensuring resilience
Capital requirements, corporate capital buffers, and related ‘spare capacity’ measures in the investment and lending process can act as mechanisms to ensure resilience to the next crisis
02
Investing in adaptation and mitigation measures.
Instead of pulling out from investments most exposed to these risks, investors could remain and engage with them, e.g. by offering capital for adaptation and mitigation
03
Being a good corporate citizen.
The financial sector can look beyond its own risk profile to contribute to real world impact and systemic change, as well as realizing its ‘corporate’ responsibility e.g. in the area of the “just transition”
1in1000’s three focus areas
The program hosts 2° Investing Initiative’s research and partnerships with financial institutions, central banks, NGOs, academia, and financial policymakers on three key areas:
Long-term metrics
Developing the performance standards and metrics to define what is a ‘long-term investor’ and a ‘long-term bank’
Risk (management) tools & frameworks
Devising risk management tools and frameworks to quantify climate change related risks and connected risks, notably ecosystem service & biodiversity loss, and threats to social cohesion & resilience
Practices & incentives
Building capacity, policies, and incentives to help financial institutions and supervisors mitigate and adapt to future risks and challenges