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 United Nations Environment Programme has announced a partnership with 16 of the world’s largest insurers to develop a new generation of risk assessment tools designed to enable the insurance industry to better understand the impacts of climate change on their business. The tools will coincide with the TCFD recommendations.
UNEP Finance Initiative
In a move that was branded “disappointing” by the Environmental Audit Committee, the UK government has resisted calls to make it compulsory for large companies to report their climate risk exposure. Companies are facing increasing pressure from investors and shareholders to report their exposure, which is likely to have a significant bearing on future performance.
Acclimatise
The Natural Capital Finance Alliance has launched a new guide to help financial institutions understand and assess the risks posed to their natural capital. The guide was published against the backdrop of the latest Special Report from the IPCC, which warns of the negative consequences to the natural systems that underpin the global economy.
Natural Capital Finance Alliance
2018

The following guide has been compiled in order to help financial institutions understand and assess their reliance on ‘natural capital’ – i.e. the clean air, oceans, ecosystems and minerals that most goods and services depend on.

It refers to

UNEP Finance Initiative Natural Capital Finance Alliance Natural Capital Coalition Global Canopy Dutch Association of Investors for Sustainable Development
2018

This report, compiled by Four Twenty Seven and real estate technology company GeoPhy, discusses the impacts of climate change on real estate investment trusts (REITs). REITs represent an increasingly important asset class that provides investors with a

Four Twenty Seven Geophy
2018

This short guide provides an introduction to weather- and climate-related risks and opportunities for loan and credit officers assessing potential lending for infrastructure. The goals are to enhance understanding of these risks so as to structure lending

Acclimatise Climate Finance Advisors Four Twenty Seven
2017

Financial markets can play a pivotal role in accelerating the transformation towards a sustainable, greener future as lending and investment decisions direct the allocation of capital in our economic system. For the markets to assume this role, a key

Deutsche Gesellschaft für Internationale Zusammenarbeit UNEP Finance Initiative Global Canopy
The TCFD has published its 2018 Status Report. The report reveals that relatively few companies disclose the financial impact of climate change on their operations, and information on the resilience of companies’ strategies under different climate-related scenarios is also limited.
Financial Stability Board
2018

This Status Report from the Task Force on Climate-related Financial Disclosures (TCFD) provides an overview of the extent to which companies in their 2017 reports included information aligned with the core TCFD recommendations published in June 2017. The

Financial Stability Board
2018

This report is an update of the Sustainable Banking in ASEAN report issued by WWF in partnership with the National University of Singapore (NUS) Centre for Governance, Institutions and Organisations (CGIO) in October 2017. This report benchmarks 34 banks

World Wide Fund For Nature National University of Singapore