The summit will examine the evolving stewardship role of financial institutions as the whole economy transitions to a net-zero and climate resilient future. We will explore climate-related business impacts across people, capital and risk, provide insights on the challenges and opportunities in pricing climate risk, and demonstrate the benefits of developing a climate-minded culture across organisations.
CGFI’s Nicola Ranger joins a panel discussion on The convergence of data, metrics, and physical and transition risk quantification in order to price climate risk and opportunities.
Our speakers will discuss how, ultimately, these analytical strands need to merge to price climate risks and improve investment decisions by businesses and investors; they will illustrate this through practical and useful examples of the tools that are being used to achieve this.
In recent years, momentum behind the need to address the climate challenge has increased. Amid the public and private sector response, banks, insurers, pension funds, and investors with balance sheets totalling nearly $150 trillion have expressed their support for disclosure following the recommendations of Task Force on Climate-Related Disclosure.
However, much more needs to be done to meet the Paris agreement goal to limit global warming to well below 2 degrees Celsius compared with pre-industrial levels and invest in adaptation to make countries and communities more resilient. But how can the financial services sector respond, not just to the momentum towards mandatory disclosure of climate-related risks, or regulator demands for stress tests, but to the obvious physical impacts of a warming world, as well as the financial challenges and opportunities presented by market changes as the economy adjusts to a low-carbon pathway?