The first point was to say that the risks of climate change can very much be financial as well as physical. As I outlined, there are transition risks that impact, for example, the oil and gas sector, particularly in Canada.
As global demand falls for oil and gas, particularly for transport fuels, that creates a big problem. By ignoring that transition risk, you're ultimately ignoring the financial headwinds facing that industry and the potential to significantly over-invest in new projects and new production that ultimately fail to deliver a financial return to investors and stakeholders. The use of those fossil fuels continues to take the world beyond climate limits and thus produces a cost through the externality associated with the carbon emissions.
By failing to take account of that, it ultimately fails to take account of the financial risks. Ultimately, that is bad for all. Crucially, it's failing to recognize the systemic nature of climate change and the fact that it will impact all sectors.