Climate Risk Measurement
Download the file → crrep.pdf
With rising temperatures and intensifying frequency of extreme weather events, climate change is exerting a significant beyond-border influence on our societies. In light of the recent 27th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP27), we are witnessing paradigm changes in global business under a new “carbon budget”. There is momentum in the financial services industry to incorporate climate risk into strategic planning and risk management in the context of investor appetites and policy developments. However, market participants are continuously highlighting challenges that inhibit the industry’s efforts and improvements in measuring climate risk. At this juncture, it is important to do a deep dive into financial institutions’ current practices and pain points in climate risk measurement to explore how to address these challenges and facilitate further improvements in climate risk measurement, which will benefit both the financial services industry and society as a whole.