Abstract: As the global financial crisis brings into sharp relief the capacity of financial institutions to accurately price financial risk, the prospect of future shocks to global markets begin to appear on our horizon. This presentation will focus on one of the least understood of these: climate change. This presentation will consider how the value of the company may be affected by climate change. It will look at the legislative basis for responding to climate change and the impacts of recent regulation on carbon pricing on the European electricity sector. It will then look at how the world's largest investors, global pension funds, are addressing this issue in their investment frameworks. It will conclude by leading a discussion on how the finance sector should move forward in the face of climate change, and identify a role for innovation and social entrepreneurship.