You are in the STAGING environment

Document / Publication

  • Do more with your content!Discover PreventionWeb Services
  • Clear, present and underpriced: the physical risks of climate change

    Email sent!

    An email has been sent to the email addresses provided, with a link to this content.

    Thank you for sharing!


Clear, present and underpriced: the physical risks of climate change

Source(s):  Rhodium Group, LLC

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 accounts for the probability of multiple extreme events occurring across locations and through time in any given simulation. These assessments were conducted under a range of different greenhouse gas emissions scenarios.

The approach provides a granular assessment of physical climate risks at the asset, portfolio, or industry level. This includes damage to fixed assets, like buildings and property, labor force disruptions, falling crop yields, rising energy demand, and other impact categories.

This analysis fills a gap in quantifying the physical risks of climate change. As “climate risk” has entered the mainstream investment lexicon, most of the attention has focused on the financial implications of transitioning to a lower-carbon economy. Historically-calibrated statistical models used by investors, insurers, corporate risk officers, and government planners to assess the likelihood of extreme events can significantly underestimate actual risk, both now and in the future. Recent advances in econometric research, data processing, and scalable cloud computing make a rigorous, evidence-based, asset-level accounting of physical climate risk possible.

Add this content to your collection!

Enter an existing tag to add this content to one or more of your current collections. To start a new collection, enter a new tag below.

See My collections to name and share your collection
Back to search results to find more content to tag

Log in to add your tags
  • Clear, present and underpriced: the physical risks of climate change
  • Publication date 2019
  • Number of pages 11 p.

Please note:Content is displayed as last posted by a PreventionWeb community member or editor. The views expressed therein are not necessarily those of UNDRR PreventionWeb, or its sponsors. See our terms of use