Abstract: This article aims to provide a analysis of the pressing financial sector challenges that South Africa is currently facing due to climate change (CC). South Africa is likely to experience numerous impacts as a result of climate change. Adaptation is gaining more and more recognition for its significance, impacting not only local communities but also regional and national administrations. It is important to recognise that there may be certain l imitations to adaptation, particularly in situations where incomes are lower. Climate-related events are already causing significant harm to the lives of many South Africans. It is clear that the economic and financial impacts are becoming more apparent as we witness a rise in the frequency and intensity of extreme weather events, leading to significant financial losses. Investments made by the private s e c t o r i n l o w - c a r b o n i n n o v a t i o n , infrastructure, energy, and transportation present both promising opportunities and potential risks. Moreover, there are exciting prospects to contemplate. Similar to an auditor, the financial system has the ability to provide valuable indicators that can help the private sector effectively manage climate risks and ensure a seamless transition. Effective collaboration among those involved in setting accounting standards, credit rating organisations, and regulatory bodies is crucial for generating accurate signals.