Disruption and damages: climate-related risks to the Australian oil and gas sector

2021 ◽  
Vol 61 (2) ◽  
pp. 395
Author(s):  
Stephanie M. Downes ◽  
Amy Steel ◽  
Enrico Favaro ◽  
Michael Wood
Keyword(s):  
Global Economy ◽  
Oil And Gas ◽  
Task Force ◽  
Climate Extremes ◽  
Climate Scenario ◽  
Low Carbon ◽  
Lower Priority ◽  
Climate Risks ◽  
Emissions Scenarios ◽  
Financial Disclosures

The oil and gas (O&G) sector has made significant commitment to reduce greenhouse gas emissions by decarbonising operations and transitioning portfolios to lower-carbon products. However, assessing the impacts of physical climate risks on assets and value chains has remained a lower priority, despite climate change consistently rated the highest risk to the global economy. Here we present selected case studies of the most relevant physical climate risks that impact key infrastructure across the O&G sector, now and in the future, with and without global abatement (that is, in high and low emissions scenarios). We focus on physical climate risks including sea level rise impacts on an offshore processing region, flooding and drought impacts in an onshore processing region, and highlight supply chain impacts on shipping and ports due to climate extremes such as cyclones. These risks all have the potential to have significant and adverse impacts on Australia’s O&G sector and have a direct impact on the ability of the sector to transition to a low-carbon future. We conclude with an overview of why and how companies should undertake climate scenario analysis for physical risks, in alignment with the Task Force on Climate-related Financial Disclosures.

A General Approach for Financial Quantification of Climate Change Risk for Enterprises

2022 ◽  
pp. 273-308
Author(s):  
Mahesh Gangaram Kanak ◽  
Sunita Purushottam
Keyword(s):  
Climate Change ◽  
Global Economy ◽  
Task Force ◽  
Manufacturing Sector ◽  
Climate Change Risk ◽  
Climate Action ◽  
Financial Disclosures ◽  
Development Goals ◽  
Climatic Impacts ◽  
Tackle Climate Change

Climate change is a major risk for the global economy. Increased frequency of climatic events coupled with unsustainable economic development without considering environmental & social aspects has resulted in runaway climatic impacts. It became evident for all stakeholders to work in unison; which led to formation of Task force on climate-related financial disclosures (TCFD). Financial quantification of climate risk is a new area to be explored & could be an effective measure to tackle climate change. This chapter provides a general approach for financial quantification of climate change risk for businesses to understand & prioritize climate action. Though the approach is limited to the manufacturing sector, it can be used with some modifications for other sectors. It will help find impacts that climate change could pose to supply chain using various tools & evaluation of its usefulness. As 'Climate Action' is part of Sustainable Development Goals; it will be useful to understand how integrating TCFD could help enterprises tackle climate change by localizing SDG-13 into their businesses.

scholarly journals Briefing: task force for climate financial disclosures (TCFD) for the property and construction industry

2020 ◽  
Vol 5 ◽  
pp. 3 ◽  
Author(s):  
Renard Siew
Keyword(s):  
Climate Change ◽  
Data Collection ◽  
Best Practices ◽  
Construction Industry ◽  
Task Force ◽  
Direct Response ◽  
Main Contributor ◽  
Climate Risks ◽  
Financial Disclosures

The property and construction industry are known to be a main contributor to climate change contributing more than 40% of the world's emissions. In direct response to this, there has been a call for corporations to be more transparent and align themselves to the requirements of the task force for climate financial disclosures (TCFD). This paper seeks to provide a briefing on the requirements of the TCFD. It highlights common challenges faced by the property and construction industry in implementing TCFD such as the difficulty in integrating climate related risks and translating them into quantitative measures, lack of capability within the industry to understand the complexities of climate risks and data collection issues among others. Recommendations are proposed to address these issues including setting up an industry specific network to share best practices in TCFD, harmonisation of existing frameworks to include TCFD requirements and exploring opportunities for incentivisation and rewards for early movers. This paper will be useful to property and construction industry practitioners who are looking at aligning to the requirements of the TCFD.

Transition to a low carbon economy in the context of the oil and gas industry

2021 ◽  
Vol 18 (2) ◽  
pp. 34-42
Author(s):  
P. N. Mikheev
Keyword(s):  
Risk Management ◽  
Oil And Gas ◽  
Transition Period ◽  
Oil And Gas Industry ◽  
Low Carbon ◽  
Adaptation To Climate Change ◽  
Gas Industry ◽  
Low Carbon Economy ◽  
Climate Risks ◽  
Carbon Economy

The article discusses issues related to the transition of the oil and gas industry to a low-carbon economy. Within the framework of the scenario approach the key risks of the transition period are considered. The importance of managing climate risks for organizations in the oil and gas industry is emphasized. The prospect of including climatic risks in the general risk management system of the organization is shown. Examples of the implementation of new approaches to climate risk management and adaptation to climate change in Russia and abroad are given.

What comes next: responding to recommendations from the task force on climate-related financial disclosures (TCFD)

2018 ◽  
Vol 58 (2) ◽  
pp. 633 ◽  
Author(s):  
Shiva Tyagi
Keyword(s):  
Carbon Capture ◽  
Large Scale ◽  
Fossil Fuels ◽  
Oil And Gas ◽  
Task Force ◽  
Carbon Capture And Storage ◽  
Oil And Gas Industry ◽  
Low Carbon ◽  
Gas Industry ◽  
Low Carbon Economy

The task force on climate-related financial disclosures (TCFD) published its recommendations for disclosing climate-related risks in June 2017. The TCFD report represents a framework for companies to disclose climate-related information consistently in their mainstream financial filings. Reporting financial activity using the lens of climate-related risk would, according to the TCFD, help more appropriately price risks and allocate capital in the context of climate change. The initiative, while voluntary, would help speed the transition to a low-carbon economy, and help shift the corporate perspective beyond immediate concerns. The oil and gas industry can play a leading role in the transition to a low carbon economy through: carbon capture and storage, use of natural gas as a transition fuel and the implementation of large-scale renewable energy projects. Given the oil and gas industry’s global leadership in petroleum geology, resource extraction and pipeline transmission, the industry has a vital role in testing the feasibility of large-scale carbon capture and storage. Fossil fuels and renewable energy technologies have obvious complementary synergies and fossil fuels like natural gas are necessary for the reliable, affordable and low-cost transition to a low carbon transition pathway. The oil and gas industry may be the only sector with the requisite expertise and global scale of operations to test and implement large-scale renewable technology initiatives within a public-private partnership framework. Moreover, oil and gas companies are well positioned to be leaders in the effort to adapt and strengthen resilience to the effects and risks of climate change and reduce impacts.

A General Approach for Financial Quantification of Climate Change Risk for Enterprises

2020 ◽  
pp. 105-146
Author(s):  
Mahesh Gangaram Kanak ◽  
Sunita Purushottam
Keyword(s):  
Climate Change ◽  
Global Economy ◽  
Task Force ◽  
Manufacturing Sector ◽  
Climate Change Risk ◽  
Climate Action ◽  
Financial Disclosures ◽  
Development Goals ◽  
Climatic Impacts ◽  
Tackle Climate Change

Climate change is a major risk for the global economy. Increased frequency of climatic events coupled with unsustainable economic development without considering environmental & social aspects has resulted in runaway climatic impacts. It became evident for all stakeholders to work in unison; which led to formation of Task force on climate-related financial disclosures (TCFD). Financial quantification of climate risk is a new area to be explored & could be an effective measure to tackle climate change. This chapter provides a general approach for financial quantification of climate change risk for businesses to understand & prioritize climate action. Though the approach is limited to the manufacturing sector, it can be used with some modifications for other sectors. It will help find impacts that climate change could pose to supply chain using various tools & evaluation of its usefulness. As 'Climate Action' is part of Sustainable Development Goals; it will be useful to understand how integrating TCFD could help enterprises tackle climate change by localizing SDG-13 into their businesses.

A General Approach for Financial Quantification of Climate Change Risk for Enterprises

2022 ◽  
pp. 966-1002
Author(s):  
Mahesh Gangaram Kanak ◽  
Sunita Purushottam
Keyword(s):  
Climate Change ◽  
Global Economy ◽  
Task Force ◽  
Manufacturing Sector ◽  
Climate Change Risk ◽  
Climate Action ◽  
Financial Disclosures ◽  
Development Goals ◽  
Climatic Impacts ◽  
Tackle Climate Change

Climate change is a major risk for the global economy. Increased frequency of climatic events coupled with unsustainable economic development without considering environmental & social aspects has resulted in runaway climatic impacts. It became evident for all stakeholders to work in unison; which led to formation of Task force on climate-related financial disclosures (TCFD). Financial quantification of climate risk is a new area to be explored & could be an effective measure to tackle climate change. This chapter provides a general approach for financial quantification of climate change risk for businesses to understand & prioritize climate action. Though the approach is limited to the manufacturing sector, it can be used with some modifications for other sectors. It will help find impacts that climate change could pose to supply chain using various tools & evaluation of its usefulness. As 'Climate Action' is part of Sustainable Development Goals; it will be useful to understand how integrating TCFD could help enterprises tackle climate change by localizing SDG-13 into their businesses.

scholarly journals Climate Change: EU taxonomy and forward looking analysis in the context of emerging climate related and environmental risks

2020 ◽  
Vol 3 (2020) ◽  
pp. 48-64
Author(s):  
Giuliana Birindelli ◽  
◽  
Vera Palea ◽  
Luca Trussoni ◽  
Fabio Verachi ◽  
...  
Keyword(s):  
Climate Change ◽  
Financial Stability ◽  
Global Economy ◽  
Financial Risk ◽  
Task Force ◽  
Low Carbon ◽  
Stress Tests ◽  
Low Carbon Economy ◽  
The Impact ◽  
Forward Looking

Climate change is causing substantial structural adjustments to the global economy. Several sectors, such as coal and steel, are undergoing severe problems related to the inevitable transition to a low-carbon economy, while others such as renewables and new environmental adaptation technologies are benefiting substantially. In this context, regulators are beginning to intervene on the legislation, while investors, customers and civil society are looking for alternatives to mitigate, adapt and make these issues more transparent. This article aims to analyze the impact that these changes will inevitably have on banks' balance sheets, introducing new risks but also opportunities. The final purpose is to help banks integrate climate risks into their organizational framework and to provide guidance on the implementation of the recommendations published by the Task Force on Climate-related Financial Disclosures (TCFD) within the broader Financial Stability Board (FSB) objectives and the UN Environment Finance Initiative (UNEP FI). Starting from a long-term perspective, the work suggests considering climate risk as a financial risk, overcoming traditional approaches that focus on reputational risk. This change implies the integration of climate change risk into the logic of Risk Management (Credit, Market and Operational risks) and a consequent sharing of responsibilities with the structures of Corporate Social Responsibility (CSR). The TCFD recommendations urge banks to use forward looking scenario analyzes, including stress tests, to evaluate and disseminate the "actual and potential impacts" of climate-related risks and opportunities, suggesting in particular to consider the consequences in terms of two categories of risk: physical and transition risk

A Guidebook for National Development Banks on Climate Risk

2021 ◽  
Author(s):  
Maria E. Netto de A. C. Schneider ◽  
Rodrigo Pereira Porto ◽  
Maria Chiara Trabacchi ◽  
Signi Schneider ◽  
Sara Harb ◽  
...  
Keyword(s):  
Portfolio Management ◽  
Financial Risk ◽  
Task Force ◽  
National Development ◽  
Climate Risk ◽  
Climate Risks ◽  
Financial Disclosures ◽  
Development Banks ◽  
Lending Decisions

This guidebook provides national development banks (NDBs) a roadmap to integrating climate risk into their lending strategies and portfolio management in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures. The journey from little action on climate to becoming climate capable allows an NDB to better understand the financial risk to itself and its clients arising from climate change, and allows it to capture new opportunities. Making climate-informed investment and lending decisions and, in the long term, allocating capital in a manner that aligns with the global curbing of emissions is good business. This guidebook is written for those NDBs heeding the call to address the climate challenges in their countries as well as to raise awareness of the urgency to act on climate risks among those that are new to the topic. NDBs, as financial institutions, need to address the potential impacts on their existing and future portfolios and financial positions.

scholarly journals The Trump presidency, climate change, and the prospect of a disorderly energy transition

2018 ◽  
Vol 45 (3) ◽  
pp. 471-490 ◽  
Author(s):  
Jan Selby
Keyword(s):  
Climate Change ◽  
Global Economy ◽  
Oil And Gas ◽  
Energy Transition ◽  
Emissions Reduction ◽  
Low Carbon ◽  
The Us ◽  
Orderly Transition ◽  
Contemporary Climate ◽  
Trump Administration

AbstractThis article reflects on the implications of the Trump presidency for global anthropogenic climate change and efforts to address it. Existing commentary, predicated on liberal institutionalist reasoning, has argued that neither Trump’s promised rollback of domestic climate-related funding and regulations, nor withdrawal from the Paris framework, will be as impactful as often feared. While broadly concurring, I nonetheless also in this article take a wider view, to argue that the Trump administration is likely to exacerbate several existing patterns and trends. I discuss four in particular: the general inadequacy of global greenhouse gas emissions reduction targets and implementation efforts; the inadequacy of contemporary climate financing; the embrace between populist conservatism and opposition to action on climate change; and not least, the current global oil and gas boom which, crucially, is being led by the US. I submit that these patterns and trends, and the Trump administration’s likely contributions to them, do not augur well for climate change mitigation, let alone for an orderly transition to a low-carbon global economy. Given current directions of travel, I suggest, this coming transition is likely to be deeply conflict-laden – probably violently so – and to have consequences that will reverberate right across mid-twentieth-century international order.

The Central Asian Economies in the Twenty-First Century

2019 ◽  
Author(s):  
Richard Pomfret
Keyword(s):  
Migrant Workers ◽  
Global Economy ◽  
Oil And Gas ◽  
The United States ◽  
Kyrgyz Republic ◽  
The European Union ◽  
Central Asian ◽  
Asian Economies ◽  
Belt And Road ◽  
External Powers

This book analyzes the Central Asian economies of Kazakhstan, the Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan, from their buffeting by the commodity boom of the early 2000s to its collapse in 2014. The book examines the countries' relations with external powers and the possibilities for development offered by infrastructure projects as well as rail links between China and Europe. The transition of these nations from centrally planned to market-based economic systems was essentially complete by the early 2000s, when the region experienced a massive increase in world prices for energy and mineral exports. This raised incomes in the main oil and gas exporters, Kazakhstan and Turkmenistan; brought more benefits to the most populous country, Uzbekistan; and left the poorest countries, the Kyrgyz Republic and Tajikistan, dependent on remittances from migrant workers in oil-rich Russia and Kazakhstan. The book considers the enhanced role of the Central Asian nations in the global economy and their varied ties to China, the European Union, Russia, and the United States. With improved infrastructure and connectivity between China and Europe (reflected in regular rail freight services since 2011 and China's announcement of its Belt and Road Initiative in 2013), relaxation of UN sanctions against Iran in 2016, and the change in Uzbekistan's presidency in late 2016, a window of opportunity appears to have opened for Central Asian countries to achieve more sustainable economic futures.

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