Assessing and disclosing climate-related financial risk

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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.

The number of financial institutions and banks that practice and support the disclosure of climate-related risk is steadily growing.
Acclimatise
Climate scenarios must be decoupled from transition and policy scenarios, and should focus on scientific drivers of climate uncertainty and risks that may occur regardless of policy decisions.
Four Twenty Seven
As pressure from the public grows, companies are more likely to face litigation if they do not disclose climate-related financial risks.
Acclimatise
2019

Developing countries in general and those in Asia, in particular, have become producers of goods and services for rest of the world as a result of which investments in the region have grown significantly. But before the advent of global investments, the

United Nations Office for Disaster Risk Reduction
2019

This status report provides an overview of the extent to which companies in their 2018 reports included information aligned with the core TCFD recommendations published in June 2017.

To better understand current climate-related financial disclosure

Financial Stability Board
A new analysis reveals that 215 of the biggest global companies report almost US$1 trillion at risk from climate change, with many impacts likely to hit within the next five years.
Carbon Disclosure Project
2019

Changes to the global climate will pose an increasing risk to the general insurance industry over the coming decades. A cross-industry specialist working group wrote this report to address an element of physical risk to insurance liabilities from climate

Bank of England
2019

Climate change induces disruptions of our ecosystems, and the transition to a low-carbon economy significantly affects the political, economic and social landscapes. Businesses have to adapt to those changes, which entails risks and opportunities. Some

Carbon Disclosure Project Institute for Climate Economics
2019
This report details the results of the UN Environment Programme Finance Initiative (UNEP FI) Investor Pilot on TCFD Adoption, a collaborative effort to explore, enhance and apply a methodology for assessing the impact of physical and transition risks.
UNEP Finance Initiative
2018

Financial institutions are exposed to natural capital risks that affect the businesses that they lend to or invest in. If a bank is lending to a farm that is unable to sustain production or facing increased costs due to water shortages, or whose crop is

World Conservation Monitoring Centre Natural Capital Finance Alliance