Future Of Climate Risk Management

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Executive Summary

Climate change is a current financial risk that will only worsen over the coming decades. To manage its short- and long-term impacts, firms must build up their capabilities now. This report provides leaders responsible for climate risk management with recommendations for how to approach these issues over the next five years. We identify gaps in current approaches and available solutions, as well as variables that could reshape the market in the coming years.
Summary for decision-makers
Firms must build up their climate risk management capabilities over the next five years

Climate change is a current financial risk
Long-term climate risk management should start now
Climate risk management requires collaboration across an organization
Organizations should implement a framework for climate risk management
Expanded solution offerings can address novel climate risk management activities
Software and services address current demand, but blind spots remain
Factors that could reshape the climate risk solutions landscape
Figure 1. Direct and indirect climate impacts
Figure 2. Examples of adaptation and maladaptation
Figure 3. Framework for climate risk management
Figure 4. Severe weather events have a small impact on risk management spending, while ESG regulation has a large impact

About the Authors

Emma Cutler

Emma Cutler

Principal Analyst

Emma is a Principal Analyst at Verdantix, with a current research agenda focusing on solutions for climate risk management. She has a background in simulation and statistical ...

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Katelyn Johnson

Katelyn Johnson

Senior Manager

Katelyn is a Senior Manager at Verdantix, specializing in enterprise risk management and external risk and resilience. She helps executives navigate today’s evolving ris...

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