Future Of Climate Risk Management

Published 29 January 2025 by Emma Cutler & Katelyn Johnson &

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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.

Table of contents

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

Table of figures

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

Principal Analyst
Emma is a Principal Analyst in the Verdantix Risk Management research practice. Her current research agenda focuses on solutions for climate risk management. She has a background in simulation and statistical modelling applied to climate adaptation, coastal management and international development. She holds a PhD in systems engineering from Dartmouth College and a BA from Bowdoin College.

Katelyn Johnson

Senior Manager, Risk Management
Katelyn is the Senior Manager in the Verdantix Risk Management practice. Her current research agenda focuses on climate risk and its integration into risk management frameworks. Prior to joining Verdantix, Katelyn was a climate scientist at GNS Science in New Zealand. She has previously held roles in the energy industry, where she helped projects manage risk due to weather and ocean phenomena. Katelyn holds a PhD in Geology from Victoria University of Wellington and an MS in Earth Sciences from Ohio State University – both focusing on climate science – as well as a BS in Meteorology from Texas A&M University.

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