In “Rethinking Climate Finance”, BlueOrchard and Prof. Stefano Battiston, director of the FINEXUS Center for Financial Networks and Sustainability of the University of Zurich, discuss climate-related risks and their impact, especially on less-developed countries as well as potential economic losses in the financial system. Building on their experience and knowledge in the asset-management industry, the paper highlights the urgent need but also great opportunity for private financial players to develop portfolios that are more resilient to climate-related risks. The paper provides insights in the form of a case study and a private investor survey, discussing how climate finance and investment vehicles must be developed further to meet private investors’ needs and expectations in order to enable them to take advantage of the climate finance market’s opportunities and to increase their engagement in climate finance.

Furthermore, the paper identifies important steps that need to be taken in order for the private sector to realise the significant role it has in upscaling the funding needed to reach the targets of the Paris Agreement and the SDGs and help tackle the consequences of climate change. Rethinking financial risk by taking a science-based and forward-looking approach to risk has been identified as key for resilience. Finally, the strengthening of the partnership between private investors and the public sector has been highlighted as a crucial aspect in this context.

The paper is enriched by a number of testimonials of renowned public and private sector representatives, such as the European Investment Bank, the German development bank KfW, and Nordea, the largest financial services group in the Nordic region.

BlueOrchard and the Department of Banking and Finance of the University of Zurich are working towards a cooperation to develop scientific metrics and bridging the gap between research and practice. This paper on climate finance presents a first step in that direction.

Public concessional finance alone is unlikely to bridge the climate finance gap. Achieving climate mitigation and adaption objectives requires major engagement of the private sector by scaling up private investments. The private sector still has a long road ahead and could benefit significantly from partnering with the public sector”, said Maria Teresa Zappia, BlueOrchard’s CIO.

Stefano Battiston, SNSF Professor of Banking and director of the FINEXUS Center for Financial Networks and Sustainability of the University of Zurich pointed out: “Navigating the transition to a low carbon economy requires public and private investors to rethink their approach to risk analysis. At the University of Zurich, we have developed a framework to manage climate-related financial risks using a forward-looking approach. Sustainable finance is a priority for the University of Zurich and we are excited to leverage Blue Orchard’s vast network of investors to share our climate-finance methodology with market participants.

Patrick Scheurle, CEO of BlueOrchard said: “Through the collaboration with the FINEXUS Center for Financial Networks and Sustainability of the University of Zurich, we are able to provide our partners and investors with a systematic analysis of the rational of private financial actors to start assessing climate change risks and take advantage of their opportunities. Our aim is not only to provide meaningful insights and guidance related to climate finance but also to send a strong signal that action regarding to climate finance is much needed and of highest importance.

To download a copy of the study, please click here.
Please click here to watch an introductory video with the authors of the study on why we need to rethink climate finance.

About BlueOrchard Finance Ltd
BlueOrchard is a leading global impact investment manager. The firm is dedicated to fostering inclusive and climate-smart growth, while providing attractive returns for investors. BlueOrchard was founded in 2001, by initiative of the UN, as the world’s first commercial manager of microfinance debt investments. Today, BlueOrchard provides investors around the world with premium investment solutions, including credit, private equity, and sustainable infrastructure. Being an expert in innovative blended finance mandates, the firm is a trusted partner of leading global development finance institutions. With a major global presence and offices on four continents, BlueOrchard has invested to date more than USD 6bn across 80 emerging and frontier markets, enabling tangible social and environmental impact. BlueOrchard is a licensed Swiss asset manager of collective investment schemes authorized by FINMA. Its Luxembourg entity, BlueOrchard Asset Management S.A., is a licensed UCITS management company as well as a licensed alternative investment fund manager (AIFM) authorized by CSSF. For additional information, please visit:

For further information, please contact:
Tahmina Theis
+41 22 596 47 69

The information in this document was produced by BlueOrchard Finance Ltd (“BOF”) to the best of its present knowledge and belief. However, all data and financial information provided is on an unaudited and “as is” basis. The opinions expressed in this document are those of BOF and its employees and are subject to change at any time without notice. BOF provides no guarantee with regard to the accuracy and completeness of the content in this document and BOF does not under any circumstance, accept liability for any losses or damages which may arise from making use of, or relying upon any information, content or opinion provided by BOF in this document. This document may contain references or links to other documents and websites and BOF has not reviewed such other documents and websites and is not responsible in any way in relation to the content of such documents and websites.  

The information in this document is the sole property of BOF unless otherwise noted, and may not be reproduced in full or in part without the express prior written consent of BOF.

All investments involve risk. We note specifically that past performance is not an indication of future results. Emerging markets impact investments involve a unique and substantial level of risk that is critical to understand before engaging in any prospective relationship with BOF and its various managed funds. Investments in emerging markets, particularly those involving foreign currencies, may present significant additional risk and in all cases the risks implicated in this disclaimer include the risk of loss of invested capital.

The materials provided in this document are for informational purposes only and nothing in this document can be construed as constituting any offer to purchase any product, or a recommendation/solicitation or other inducement to buy or sell any financial instrument of any kind and shall not under any circumstances be construed as absolving any reader of this document of his/her responsibility for making an independent evaluation of the risks and potential rewards of any financial transaction. We note in particular that none of the investment products referred to in this document constitute securities registered under the Securities Act of 1933 (of the United States of America) and BOF and its managed/advised funds are materially limited in their capacity to sell any financial products of any kind in the United States. No investment product referenced in this document may be publicly offered for sale in the United States and nothing in this document shall be construed under any circumstances as a solicitation of a US Person (as defined in applicable law/regulation) to purchase any BOF investment product.

The information provided in this document is intended for review and receipt only by those persons who are qualified (in accordance with applicable legal/regulatory definitions) in their respective place of residence and/or business to view it, and the information is not intended under any circumstances to be provided to any person who is not legally eligible to receive it. Any recipient of information from this document who wishes to engage with BOF in furtherance of any transaction or any relationship whatsoever must consult his/her own tax, legal and investment professionals to determine whether such relationship and/or transaction is suitable. 

By no means is the information provided in this document aimed at persons who are residents of any country where the product mentioned herein is not registered or approved for sale or marketing or in which dissemination of such information is not permitted.

BOF disclaims all liability for any direct or indirect damages and/or costs that may arise from the use of (whether such use is proper or improper), or access to, this document (or the inability to access this document).

Copyright © 2019, BlueOrchard Finance Ltd. All rights reserved.