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.
Table of contents
Summary for decision-makersFirms 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 impactsFigure 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
Organisations mentioned
Centre for Public Impact, Chatham House (Royal Institute of International Affairs), Climate X, Climavision, CLIMsystems, EY, Journal of Arboriculture, MeteoSim, Mitiga Solutions, Moody’s, National Bureau of Economic Research, National Delta Programme (Netherlands), Nature Communications, New Jersey Office of Emergency Management, New York City Metropolitan Transportation Authority (MTA), Pacific Gas & Electric Company (PG&E), PwC, Reask, Risilience, Science Advances, Southern California Edison (SCE), Task Force on Climate-related Financial Disclosures (TCFD), The New York Times, The Straits Times, UN Environment Programme (UNEP), World Bank, World Economic Forum (WEF), XDI SystemsAbout the authors
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