Every September, Climate Week NYC brings together leaders from business, politics, and societies to shape the global response to climate change. But like any major summit, it has its own vocabulary. To turn talk into action, it helps to speak the same language.
Here are our explanations of six terms you're guaranteed to hear on stages and at side events in New York at Climate Week, and why they matter to anyone concerned with climate risk. This overview remains at a high level. We’re offering a compact guide to the terms you'll hear most often, without getting into all the technical details.
What is ‘climate finance’?
Climate finance means mobilising capital for the transition to a climate-neutral, resilient economy. Investments range from renewable energy and electric mobility to infrastructure built for a hotter, stormier world. For banks, insurance companies, and real estate investors, climate finance goes beyond supporting green projects. It involves recognising the financial significance of climate risks, in other words, quantifying how much value climate change could destroy or protect.
What is ‘climate risk mitigation’?
Climate risk mitigation is the process of reducing the potential impacts of natural hazards and climate change through a combination of technical adaptation and societal transformation. It involves understanding, measuring, and managing risks such as heat stress, flooding, or sea-level rise across geographies and time horizons. By integrating climate risk assessments into business strategies, organisations can adopt proactive adaptation measures, strengthen resilience, and secure long-term operational and financial stability.
What is ‘climate risk adaptation’?
Climate risk adaptation is a strategic approach to reducing vulnerability and strengthening resilience against the impacts of climate change. It involves integrating climate risk assessments into business strategies and implementing adaptation measures that ensure long-term stability and financial security. Such measures can include flood protection, storm shutters, impact-resistant windows, improved roofing and drainage, or fire-resistant materials
What is ‘loss and damage’?
The term loss and damage describes the negative impacts of climate change that cannot be avoided through climate mitigation or adaptation. For businesses and financial institutions, it is a reminder that not all climate risks can be managed away. Scenario modelling and physical risk assessments can help distinguish between risks that can be mitigated and those that could lead to stranded assets or irretrievable losses.
What is ‘the adaptation gap’?
The adaptation gap describes the growing discrepancy between today's adaptation efforts and what is needed to cope with escalating climate risks. At Climate Week NYC, adaptation is not just seen as another item on the agenda, but as a major investment opportunity. Strengthening power grids, updating building codes, or redesigning cities for heavier rainfall are examples of projects that both save lives and create economic value.
What are ‘nature-based solutions’ (NbS)?
Nature-based solutions use natural processes and ecosystems to address societal challenges such as climate change, biodiversity loss, and water security. Think of mangroves, wetlands, forests, or urban green spaces. Such areas store carbon, buffer extreme weather events, and improve community well-being. People appreciate that these solutions offer environmental, social, and economic benefits simultaneously, and at relatively low cost.
The vocabulary presented here represents the language of resilience. These terms signal the direction of regulation, how capital will be allocated, and where vulnerabilities will arise.
For decision-makers in finance, insurance, and real estate, mastering this language is no longer optional. It is the foundation of a resilient strategy.
However, understanding the vocabulary is only the first step. Acting on it – with data, foresight, and clarity – is what creates resilience.
