Climate risk – Special report 2021
Understanding the impact of climate risk on lending and investment portfolios is now a top priority for the financial sector, and will be one of the biggest challenges it faces in 2022 and beyond.
Analysis commissioned by the UN High Level Climate Action Champions estimates that the private sector could deliver around 70% of total investments needed to meet net-zero goals. A huge step towards this is the formation of the Glasgow Financial Alliance for Net Zero, the 450 members of which – including banks, insurers and investors – have pledged to become net zero by 2050 at the latest. The group has a collective $130 trillion committed to combatting climate change.
As these financial firms begin to transfer lending and investment from carbon-intensive to carbon-neutral firms and clean technologies, more sectors and financial firms will begin to feel the effects. This Risk.net special report contains a collection of articles that consider the impact rising carbon prices will have throughout the economy, discuss the challenges of modelling climate risk exposures and of integrating climate risk into risk management frameworks, and look at the likely trajectory of regulation.
Download the full 2021 Climate risk special report in PDF format
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
Integrating climate risk into risk management frameworks
As financial firms begin to transfer lending and investment from carbon-intensive to carbon-neutral firms and clean technologies, more sectors and financial firms will begin to feel the effects. In a Risk.net crowd-sourced scenario-generation exercise,…
Climate scenarios: carbon price shock sees asset prices slump
Crowdsourced scenario analysis suggests very few sectors safe from a post-COP carbon price pop
The impact of European gas prices on climate goals
As governments increase their focus on climate change following the UN Climate Change Conference, COP26, ZE Power asks whether high gas prices in Europe could derail decarbonisation efforts
Weather, or not: is climate risk just part of credit risk?
Practitioners divided on whether climate risk can fit into existing credit risk weights
Applying scenario analysis to climate risk
Matthew Lightwood, director, risk solutions at Conning, discusses the application of stochastic modelling with scenario analysis to quantify climate risk in a portfolio
Banks seek regulatory guidance on climate transition plans
Lack of agreement on how to identify whether borrowers are converging with net zero targets
Making the cut: EU eyes Isda’s carbon trading proposals
EBA fears suggested treatment of emissions would be misaligned with rest of FRTB
Sending the right signals: quantifying and repricing risk
Risk.net convened a panel of three experts from different fields to discuss some of the most pressing and pertinent climate-risk related issues, each offering different insight to the discussion from their respective backgrounds, providing an exchange of…
TCFD backs carbon disclosure, but not temperature scores
Influential standard setter decides the implied temperature rise ‘is not ready’ for funds
Study fuels doubt over benefits of climate risk-weights
Research finds both green supporting factor and carbon penalising factor have drawbacks
Stock-level ‘inelasticity’ explains ESG boom, research says
Reluctance of ESG investors to sell holdings is pushing prices even higher
FSB debates how to fit climate risk into capital rules
Regulators ponder whether climate risk needs new RWAs or recalibration of existing ones
Climate laggards need to make double the carbon cuts – MSCI
Asset managers that wait until 2025 will have to cut emissions by 14% a year to limit warming
Why new EU rules are fuelling greenwashing and how to stop it
Reporting requirements for ESG funds may not solve the problem – a list of harmful investments might