Assessing and disclosing climate-related financial risk

Image

Physical climate risk has emerged as a prominent threat to the financial sector and the global economy. Understanding investments’ exposure to risk from climate hazards is a critical step toward building resilience.

2020

The Network for Greening the Financial System (NGFS) Climate Scenarios (the scenarios) have been developed to provide a common starting point for analysing climate risks to the economy and financial system. While developed primarily for use by central

The Central Banks and Supervisors Network for Greening the Financial System
2020

This guide provides practical advice on using scenario analysis to assess climate risks to the economy and the financial system. It is based on the initial experiences of the Network for Greening the Financial System (NGFS) members and observers and also

The Central Banks and Supervisors Network for Greening the Financial System
2020

This guide was developed jointly by the European Central Bank (ECB) and the national competent authorities (NCAs) with the aim of providing greater transparency regarding the ECB’s understanding of the safe and prudent management of climate-related and

European Central Bank
2019

By matching the timing and geography of extreme high surface temperature (EHST) events in the United States to the location of firms' headquarters, it was possible to measure the equity market's response to an exogenous shock deemed by climate

Elsevier
2019

This MIT report, Climate-Related Financial Disclosures: The Use of Scenarios, outlines a series of recommendations on how companies, particularly those in the oil and gas industry, can use scenarios to effectively disclose risks and opportunities they

MIT Climate CoLab
An analysis finds that while climate-related disclosures are on the rise, the quality and depth of reporting varies widely across companies.
Moody's Investors Service
To date, the primary audience for climate risk disclosures has been the investor community and regulators but climate risks need to be better communicated to customers.
London School of Economics and Political Science, the
2018

Climate change is a foreseeable risk facing many listed companies in the Australian market in a range of different industries. Directors and officers of listed companies need to understand and continually reassess existing and emerging risks (including

Australian Securities and Investments Commission
2018

This report looks at what is driving the heightened risk environment and how most companies are vulnerable to climate-related risks in some way, even if they are not in the energy sector or other carbon-intensive parts of the world economy. The report

Clyde & Co LLP
Moody's has bought climate data firm Four Twenty Seven, indicating that climate risk will play an important role in rating decisions in the future.
New York Times, the