Risk Management

Risk Management

The resources below have been collated to provide non-executive directors with a knowledge hub.  This brings together relevant climate change materials from regulators, standard setters and other content creators.
Resources are provided based on our Terms and Conditions.

Newly added resources

New York Times
Brad Plumer

Rising Seas Could Menace Millions Beyond Shorelines, Study FindsAs oceans rise, powerful coastal storms and extreme high tides will be able to reach farther inland, putting tens of millions more people and trillions of dollars in assets worldwide at risk of periodic flooding.30 July 2020

BlackRock

BlackRock approach to sustainability – Executive SummaryReport on BlackRock Investment Stewardship’s (BIS) approach to sustainability.8 July 2020

Partnership for Carbon Accounting Financials

PCAF-Enabling financial institutions to assess and disclose greenhouse gas emissionsPartnership for Carbon Accounting Financials offers information on measuring financial emissions in order to manage risk and identify opportunities associated with greenhouse gas emissions.

 

Previous reports, analysis and articles
Organisation / Publication / AuthorLinkInformationDate
CervestClimate security report: assessing business riskThe report explores the obstacles preventing organisations from addressing climate volatility and identifies how climate security can help safeguard our future.06/07/2020
Business GreenThree quarters of UK businesses feel threatened by climate crisisThree quarters of UK businesses feel threatened by climate crisis, yet only one in 10 have undertaken climate risk assessments and regard issue as a priority, reveals study by Cervest.06/07/2020
KPMG
Bridget Beals
How can we use the lessons learnt from COVID-19 to better prepare for climate changeMore robust planning to manage climate-related impacts is crucial to prevent the systemic impact of COVID-19 happening again.01/06/2020
KPMG
Simon Weaver
Why is COVID-19 an opportunity to better understand the risks related to climate change1. Human behavioural bias may be limiting our current response planning. 2. Any response planning must consider the network effects of risk. 3. A globally co-ordinated response is key.01/06/2020
McKinsey & CompanyReckoning with the overlooked business risks of climate changeExperts from the Woods Hole Research Center discuss how companies are missing the scope of mounting physical risks from climate change.28/05/2020
Deloitte Financial Services BlogClimate change – keeping up the momentumBanks should give COVID-19 immediate attention but should not slow down on climate risk programmes. Article explores recent announcements made by UK regulators and offers conclusions on priority areas for banks’ climate risk management programmes.19/05/2020
We Mean Business
Maria Mendiluce
From Premiums to GreeniumsArgues that short-term private sector pandemic responses consider the longer-term play that climate change and other sustainability challenges represent.18/05/2020
McKinsey Quarterly
Jonathan Woetzel et al
Confronting climate riskOverview of the McKinsey Global Institute (MGI) recent report ‘Climate risk and response: Physical hazards and socioeconomic impact’.15/05/2020
World Resources InstituteMillions of People, Trillions in Property at Risk from FloodingAqueduct Floods, a tool from the World Resources Institute, finds that by 2030 millions of people and trillions in urban property will be impacted, annually, by riverine and coastal flooding. Investing in flood protection infrastructure now can significantly decrease the impact of that flooding.23/04/2020
Company DebtHow is Your Business Going to be Affected by Climate Change and What Should You Do to Prepare?Insurance giant Aon’s 2018 Weather, Climate and Catastrophe Insight Report report described an economic loss of $215bn due to weather disasters in 2018, compared to $438 in 2017. Not only did this make it the fourth costliest year on record at USD90 billion, it highlighted that the protection gap, (the portion of economic losses not covered by insurance) was 60%.01/02/2020
AvivaStranded, when assets become liabiltiesProjects most at risk include those with high operating costs or a high carbon intensity of production; large upfront capital commitments and long investment lead times; and a higher carbon content. These include oil sands, shale and extra-heavy oil, as well as reserves of higher-grade oil and gas in deep waters and other hard-to-access sites like the Arctic. In December 2019, US investment bank Goldman Sachs ruled out financing oil drilling or exploration in the Arctic in future, adding it would not invest in new thermal coal mines anywhere in the world.28/02/2020
Cambridge Judge Business School Dr Andrew Coburn
Chief Scientist Cambridge Centre for Risk Studies
Applications of Climate Science for Business RiskPresentation of Cambridge Global Risk Index - Disruption Threats to Global Economy Extreme Weather as a Trigger for Other Risks to the Global Economy, see page 8.26/02/2020
McKinsey Global InstituteClimate risk and response – Physical hazards and socioeconomic impactsIn this report, we look at the physical effects of our changing climate. We explore risks today and over the next three decades and examine cases to understand the mechanisms through which physical climate change leads to increased socioeconomic risk. We also estimate the probabilities and magnitude of potential impacts.16/01/2020
World Economic Forum
In partnership with Marsh & McLennan and Zurich Insurance Group
The Global Risks Report 2020 - 15th EditionThe World Economic Forum’s 2020 top five global risks in terms of likelihood relate to the environment and the number one risk in terms of impact is: climate action failure01/01/2020
Financial Conduct AuthorityFeedback FS 19/6 – Climate Change and Green Finance:  summary of responses and next stepsDiscusses the stakeholder responses received to its discussion paper DP18/8 and sets out its actions and next steps to ensure the FCA’s regulatory approach creates an environment where market participants can manage the risks from moving to a low carbon economy, and capture opportunities to benefit consumers.01/10/2019
World Business Council for Sustainable DevelopmentBusiness climate resilience: thriving through the transformationBrings together global developments and latest thinking on climate adaptation and resilience, with particular focus on private sector climate resilience. It builds on the need for businesses to prepare for both the physical risks that are associated with climate change, as well as the associated transitional risks on the path towards a net-zero economy.18/09/2019
Bank of England
Bank of England: Avoiding the storm: Climate change and the financial system speech, Sarah Breeden, Executive Director, International Banks SupervisionHow prepared are business leaders/NEDs to assess, and accept, the significant financial risks and potential losses of global financial assets to their organizations that climate change presents?15/04/2019
Bank of England
Climate ChangeThis page on the BoE’s website details the work the Bank is carrying out ongoing to assess and respond to climate-related financial risks.16/06/2017
Clyde & CoClimate change: Liability risks for businesses, directors and officers. The coming wave of litigation. Examines how assessments of climate risk, resilience and the opportunities created by the transition to a low-carbon economy and adaptation to climate change are being increasingly integrated into business decision-making.29/03/2019
SchrodersThe forgotten physical risksThis analysis examines the implications of the physical risks of climate change for companies and investments.01/08/2018
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