The financial services industry has some way to go before it is ready for the impacts of climate change, according to a report by the Financial Services Institute of Australasia (Finsia).

The report, In the long grass – leadership in adversity, looks at the effect of emissions pricing, reporting systems and opportunities for emission reduction on investment valuation, risk assessment and advisory services.

It finds the value and risk profiles of assets will be affected not only by the direct impacts of weather changes but also by technological advances, changes in consumer demand, government regulation and the emissions trading scheme.

Finsia’s report suggests the industry needs a “triple helix model” of integration – putting climate change considerations into all products and services; innovation – products and services that capitalise on the opportunities and risks that climate change presents; and alignment of internal systems, operations and culture to manage a company’s carbon footprint.