Climate Risk

Climate Risk Data and Analytics Tools: An Infographic

As the relationship between climate change and financial risk become more apparent, the ability of firms to assess climate risk for their unique needs is becoming increasingly important. Assessing climate-related risks can help firms with their own investment and strategic decision-making, overall risk management, and may become important to help answer questions by investors, regulators, and other stakeholders. An industry of climate risk data and analytics tools has emerged in the last five years to help firms and investors better assess climate related risks. CFA tracks data and analytics tools useful for investment decision making (for both public and [...]

2021-10-07T14:42:20-04:00October 7th, 2021|Climate Risk|

Why the new IPCC report is also a ‘code red’ for finance

By Stacy Swann, Alan Miller, and Darius Nassiry Earlier this week, the Intergovernmental Panel on Climate Change (IPCC) released its report "Climate Change 2021: The Physical Science Basis."  The report was based on over 14,000 studies by hundreds of scientists from 66 countries and represents a significant update to the last major report eight years ago. Recent extreme weather events, including wildfires in California, Greece, Turkey, and Russia, and flooding in China and northern Europe, underscored the risks of extreme weather amplified by climate change. The reaction in the press was dire: ­ "Code red for humanity" and "the [...]

US businesses face a sea change on climate risk management and disclosure

By Stacy Swann The Biden administration is reportedly preparing an executive order that will require federal agencies to measure, manage, and disclose climate risks — and which, by extension, likely signals new rules for financial institutions and for companies working in sectors from energy to agriculture. Meanwhile, the Federal Reserve is setting up committees to look at climate risks to banks and the broader financial system, and the Securities and Exchange Commission is considering climate disclosure requirements for public companies. At the state level, the New York Department of Financial Services has put the nation’s first-ever regulatory framework for climate [...]

2021-04-19T17:56:51-04:00April 19th, 2021|Climate Risk, Greening Finance|

New report: Protecting low-income communities through climate insurance

By Will Bugler (Acclimatise) & Andrew Eil (Climate Finance Advisors) This article also appears on the Acclimatise website here. Since 2015, the InsuResilience Investment Fund (IIF) has worked to build the climate resilience of poor and climate-vulnerable households as well as micro, small and medium enterprises, by increasing climate insurance coverage. Today, at a side event of the InsuResilience Global Partnership’s 4th Annual Forum, it has launched a new report “Protecting low-income communities through climate insurance”, which takes stock of its experience and achievements to date. As the first fund of its kind to raise private capital to invest in [...]

2020-12-22T13:19:32-05:00December 22nd, 2020|Climate Risk|

How Can Climate Finance Help Secure the Resilience of Low-Income Communities?

This op-ed originally appeared on Triple Pundit in two parts: Part 1, Part 2 Co-written with Joyce Coffee   In 2020, the world’s poor find themselves at the nexus of two crises: COVID-19 and climate change. The populations most vulnerable to COVID-19 – low-income individuals, women, informal workers and minorities – are the same populations that are most vulnerable to weather and climate crises. The poor disproportionately face obstacles to adapting to the effects of climate change due to unstable incomes, small savings, their work in the informal economy, a lack of access to credit, and of course, the reality [...]

2020-10-30T15:44:23-04:00October 30th, 2020|Climate Risk|

Science and data analytics can illustrate climate-related financial risks. COVID-19 might show us what climate risk will “feel” like.

News out in the last two weeks has illustrated the dramatic impacts of COVID-19 on the overall economy.  In the US, GDP contracted by 4.8 percent in the first quarter, and unemployment is at depression-era levels. The European Commission has released forecasts for a "recession of historic proportions", projecting a 7.4 percent contraction in 2020 across the European Union. Major emerging markets have suffered as well. China’s economy shrank by 6.8 percent in Q1, and Brazil’s economy is expected to shrink by at least 3.8 percent this year. Meanwhile, other major emerging market economies are bracing for the uptick in [...]

2020-09-25T14:55:47-04:00May 12th, 2020|Climate Risk, Greening Finance|

For Solving Tough Problems, Government Always Matters – How We Invest Matters Too

COVID-19 reminds us that government has a critical role to promote the greater good of everyone, not only a few. Governments across the world (both national and local) and the policies they promote have always had the potential to make the difference in our ability to solve tough problems. Importantly, we have seen examples of both good government and not-great government in this moment of crisis. When we look beyond the current COVID-19 pandemic and the pressing need to rebuild the economy, the largest looming issue at our doorstep is undeniably the climate crisis. Addressing climate change takes leadership at [...]

2020-04-15T17:19:03-04:00April 15th, 2020|Climate Risk|

Mind the Protection Gap: Where Finance Fits in Solving the Climate Vulnerability of the Poor

Last week, an opinion article in the Washington Post by Robert Samuelson somewhat skeptically noted that recent announcements by BlackRock and other financial institutions were not a substitute for strong, unequivocal policy direction to address climate change. Samuelson was correct on one front: There is a desperate need for policy to align with, reinforce, and accelerate a low-carbon, climate-resilient transition. But we also need the financial sector to step up, and as we noted in a blog earlier this month, BlackRock’s announcement puts a marker down that the pathway for seeking solid investment returns runs through good climate risk screening [...]

2020-06-23T17:19:01-04:00January 31st, 2020|Climate Risk|

Addressing Climate Change: The Financial Sector Reaches a Tipping Point

As the toll of climate risk events climbs, the finance sector is at a crossroads of conventional wisdom and best practices. This year, in the weeks following devastating Australian fires and unprecedented flooding in Indonesia, climate-related risks dominate the World Economic Forum’s Global Risks Report 2020 top five long-term risks. The experts who inform the annual WEF survey likewise highlight climate-related risks are among the most important short-term risks. In short, climate risks are here now. And they are gravely serious for the economy as well as the planet: A new paper from the Bank for International Settlements, the central [...]

2020-02-20T13:14:08-05:00January 23rd, 2020|Climate Risk, Greening Finance|

Financing Climate-Resilient Community Infrastructure in the Age of Adaptation

Stakes are high for communities that have already started experiencing extreme rain, storm events, or wildfires. In the past three years, climate damage has cost the world $650 billion, two-thirds of which was covered by North America alone, and if trends continue, the damage could reach hundreds of billions of dollars just in the United States by 2090. But how well prepared are these communities for the age of adaptation? Frontline communities are acutely aware of the numerous ways climate change can impact local economies, jobs, and livelihoods, including in terms of business interruption, loss of income and economic activity, [...]

2020-02-20T13:14:16-05:00December 12th, 2019|Cities, Climate Risk|
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