Assessing and disclosing climate-related financial risk


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.


Climate-related risks are a source of financial risk and it therefore falls squarely within the mandates of central banks and supervisors to ensure that the financial system is resilient. With this first comprehensive report, NGFS builds upon this insight

The Central Banks and Supervisors Network for Greening the Financial System Banque de France

Investing in a Time of Climate Change – The Sequel (the Sequel) documents Mercer’s latest climate scenario model for assessing the effects of both climate-related physical damages (physical risks) and the transition to a low-carbon economy (transition

Mercer LLC

The Australian Prudential Regulation Authority's (APRA) climate change survey of 38 large entities, across all regulated industries, highlights the range of activities and strategic responses that entities are adopting to assess and mitigate climate

Australian Prudential Regulation Authority

This report provides a scenario-based analysis drawing on 21 global climate models to assess the physical risks of climate change on investment portfolios, aligning with recommendations from the Task Force on Climate-Related Financial Disclosures. It

Rhodium Group, LLC

This report focuses on tools for assessing such the physical risks of climate change and extreme weather to investment portfolios. The report has several key findings:

  • Physical climate risks vary greatly by region, drawing on the latest granular
The Bank of England recommends that banks, insurers and asset managers regularly test their strategic resilience against climate change risks. According to the central bank, currently only a handful of banks in Britain were taking climate change into account in their risk assessments.
Globe and Mail, the

While investors are paying more attention to climate change, there is a lack of granular data designed to support financial decisions. Climate science can provide improved indicators and metrics to help investors better manage physical climate risks. This

Center for International Climate Research Wageningen University and Research Centre Meteo France Institute for Climate Economics

This report shows how investors and lenders can make use of well-established insurance models, tools and metrics to improve their management of some of the physical risks of climate change.

Natural catastrophe models have long been used by the

University of Cambridge

This report has been written by CDP and the Carbon Trust based on climate change, forests, and water security disclosures by European companies in response to CDP’s 2018 investor request.

Climate change data was analyzed from a total of 849 companies

Carbon Disclosure Project Carbon Trust

Climate change is a systemic risk – one which investors cannot diversify away from. As equity investors and universal owners, investors have the ability and the responsibility to raise their concerns with investee companies to manage climate risk

Asia Investor Group on Climate Change