With momentum building behind the carbon-free agenda, the 2020s are set to become the decade in which climate change becomes a priority for investment firms.
Climate change risk can be broadly divided into two interrelated parts: physical risk to assets due to the associated extreme weather conditions and transition risk linked to the shift to a low carbon economy.
Whether firms will have to deal with higher physical risk or higher transition risk will depend on what shape the international policy response takes.
In this report we examine key issues around how global regulators and individual firms are measuring, analyzing and adjusting to climate-related risks. This includes the use of Bloomberg’s geospatial data and carbon emissions estimates to help firms manage their risks and enhance climate reporting compliance.
We also highlight the market realities that prevent investment banks from walking away from fossil fuels, despite the boom in green bonds.
We hope you find this report informative and encourage you to get in touch with us if you would like to receive more insight on how climate-related risks are set to impact the global financial system and your organization.