The risks that flow from climate change, which would be physical risks or transition risks, add costs, ultimately, to a financial institution. High risk usually means some form of higher either credit loss or investment loss, unless it's managed appropriately.
The earlier and more effectively financial institutions adapt their risk management policies to reflect climate risk, the more likely it is that those costs will be lower. An example would be flood insurance policies. As floods become more prevalent, flood insurance costs go up; however, the earlier an insurance company identifies flood risk and begins pricing its products to reflect that reality, the more likely it is that consumers and homeowners will incorporate those higher costs in their home-buying decisions, and then the less likely they are to be susceptible to that risk. The earlier, the better, always.