"In the exercise, undertaken over several months in 2023, the central bank aimed to understand how lenders would manage the risks of rising temperatures and changing external policies.
"Participants suggested that climate-related risks are highly uncertain and challenging to measure," the report said."
“Our evidence supports the argument that companies with greater exposure to climate risk have a lower #MarketValue and are more exposed to climate-related events. It’s apparent that the market recognises #ClimateRisk as relevant and undiversifiable, penalising those firms that face more significant risks from climate change.”
Actuaries have issued a call for more precise #ClimateRisk assessments, highlighting the concept of the “risk of ruin,” which refers to a critical juncture beyond which global society might be unable to adapt to the ramifications of #ClimateChange🚨https://buff.ly/3TDx4A5
"The head of the IPCC has compared the rollout of carbon capture and storage (#CCS) to "trying to push water uphill," questioning a technology that the oil and gas industry has long touted as integral to net-zero emission plans.
The International Energy Agency has previously called for the oil and gas industry to let go of the "illusion" that carbon capture is a solution to climate change, pushing instead for energy majors to ramp up investments in clean energy."
"[#Exxon] is suing #investors to intimidate them from ever trying to influence corporate decisions.
“What they’re trying to do is silence shareholder voices, specifically to silence the voices of shareholders who are concerned about #ClimateRisk,” he added. “It’s noteworthy that a company like Exxon is so determined to shut down the conversation… amongst shareholders about these long-term risks.” "
Sounds like they're soiling their pants over "climate risk".
Carbon Tracker claims vast majority 140 companies targeted by Climate Action 100+ investor group are failing to provide adequate data on risks they face from climate change & the #NetZero transition https://buff.ly/49PDG3r#ClimateRisk
How (some) executives at (some) financial institutions look at #ClimateRisk
A thread.
"In September to November 2023, Market Forces conducted an online survey of 150 investors at some of the world’s biggest financial institutions across the UK, USA, Singapore, Japan, Australia, Hong Kong and Belgium"
These are c-suite level people.
#Insurance plays a critical role in protecting vulnerable communities from natural hazards and extreme #weather events, yet globally, many losses remain uninsured. In this latest #JCRR article, the authors how science and practice can deliver effective risk transfer as a vehicle for #climate adaptation.
Saw someone on here lamenting that their insurance options for a home in Florida doubled and tripled in price over the last five years. It would be cruel to inflict the dunks on them by saying "that's because houses in Florida don't have much of a future" but in truth...
We live in a time of climate calamity. None of us (to a couple decimal points) can afford insurance against climate risk. It's not ever going to get better, only worse. #ClimateChange#Climate#ClimateRisk#ClimateApocalypse
"The U.S. Treasury Department's Office of the Comptroller of the Currency (#OCC) carried out its first #ClimateRisk assessment of more than two dozen banks in recent months, laying the groundwork for heightened scrutiny of Wall Street's accounting for such threats.
The regulator used the discovery review to establish a baseline of banks' practices so it has a yardstick with which to assess their progress in implementing the guidance."
"#India's largest #banks have begun to audit their own and borrowers' #CarbonFootprint as they try to mitigate #FinancialRisks amid growing pressure from regulators and investors to better align their ESG reporting with global norms, a dozen sources told Reuters.
A lack of #ClimateRisk disclosures could dent a bank's appeal for global investors and a delayed transition to greener business models may raise borrowing costs for companies, analysts said."
That sound you hear is of corporations HUSTLING to put in place their #CarbonAccounting and #ClimateRisk departments.
The SEC is not far behind California.
I look forward to seeing those rankings. A "carbon fact" on product labels would be nice, like "nutrition facts" on food labels.
It's "The new dawn of a corporate climate disclosure regime with legal teeth."
"Markus Müller, #DeutscheBank's ESG Chief Investment Officer, has recently issued a warning to investors about the looming risk of sudden devaluation due to #ClimateChange. "
The implementation of #ClimateRisk disclosure rules in regions such as the #EuropeanUnion and #California has made potential losses increasingly apparent to investors."
"One bill — already approved by the [California State] Senate — would force about 5,300 #US corporations earning more than $1 billion and doing business in #California to annually report their global [greenhouse gas] #emissions that contribute to #ClimateChange.
Another bill that won Senate approval would require more than 10,000 companies with revenues exceeding $500 million to detail how climate change poses #FinancialRisks to their [worldwide] #operations."
If these bills pass all the hurdles - and of course it will be taken to court - California will have caused a financial earthquake that will reverberate around the planet.
"Julie Gorte, SVP sustainable investing at Impax Asset Management, says, “What the #investment community is working at doing is pricing #ClimateRisk. We need real assurance by 2030 … If [a company has] higher #emissions, they’re at greater risk and I’m going to need a premium” to own such companies."