Climate change is already started to cause a wide range of physical effects with the serious implications for human lives, for societies, for economies, and therefore for investors and businesses. While wider variability, as always existed, the science shows that extreme weather events have become more frequent and more severe, and that the impact of climate change is going to be potentially catastrophic in the coming years or decades. Using the lenses of finance, two distinct but interdependent risks are associated to climate change. First of all, climate change means increasing temperatures, rising sea levels, changing weather patterns, and more frequent adverse weather events like storms. These are physical risks associated to climate change. These risks can pose serious challenges for company facilities, for supply chains, for employees, for current and potential customers, and of course, for the communities on which businesses depend. Because of climate change, economies are moving towards a less polluting, greener production and consumption. Such transition that is mostly a policy-making transition, could mean that some sectors are going to incur into enormous shifts in the value of the assets. Those risks mostly depend on policy-making as a response to climate challenges. They are called transition risks. For example, some assets will turn out to be worth less than expected as a result of the changes associated with the energy transition. Those assets are called stranded assets. There are already examples of coal mines, of a gas power plants, and other hydrocarbon reserves which have been stranded because of the transition towards a low-carbon economy. Importantly, many countries in the world are implementing carbon pricing mechanism to progressively reduce the greenhouse gas emissions of companies. Paying a price for carbon emissions can affect the value of many assets. Because of global business relationships in supply chains are highly interconnected, the materialization of climate risks can be felt for our from the country or area where they originally started. Science predicts also that the size of climate change costs are unprecedented and potentially catastrophic. The consequences of climate change will therefore be felt across all asset classes. Although with varied intensity. Government and businesses are addressing climate change with mitigation and adaptation actions. Mitigation activities address the causes of climate change and they try to minimize the possible impacts of climate change. For example, by improving energy efficiency, by switching to renewable energy, by taxing the use of fossil fuels, by promoting cleaner industrial processes. On the other hand, adaptation looks at how to reduce the negative effects of climate change. For example, by building more climate-resilient infrastructures and houses, by using scars, water resources more efficiently, by building defenses against flood and the rising level of seas. Finance is affected by climate change in several possible way. It can contribute to addressing climate change. First of all, finance can reduce the greenhouse gas emissions by pricing efficiently the social cost of carbon by reflecting the physical and transition risks properly in the valuation of financial assets. At the same time, there is a growing need to attract and mobilize greater public and private capital into climate adaptation and resilience. In particular, in two infrastructures that are climate resilience. Climate change is posing existential threats to the planet, to human activities, and therefore to finance. But it is also opening up new investment opportunities.