The Introduction of a Climate Risk Taxonomy with an Impact Study on the Financial Risks of Climate Change to Corporations.

2020 ◽  
Author(s):  
Bob Buhr ◽  
Christopher Cormack
Keyword(s):  
Climate Change ◽  
Climate Risk ◽  
Financial Risks ◽  
Impact Study ◽  
Risk Taxonomy

scholarly journals Climate risk reporting practices by UK insurance companies and pension schemes

2019 ◽  
Vol 24 ◽  
Author(s):  
P. Klumpes ◽  
M. Acharyya ◽  
G. Kakar ◽  
E. Sturgess
Keyword(s):  
Climate Change ◽  
Risk Management ◽  
Annual Reports ◽  
Insurance Companies ◽  
Climate Risk ◽  
Pension Scheme ◽  
Financial Risks ◽  
Reporting Practices ◽  
Pension Schemes ◽  
Risk Reporting

Abstract Increasing global concern over the impact of climate change has recently led to public scrutiny over the adequacy of existing risk management practices by insurance companies and pension schemes in dealing with these challenges that potentially impact both individual actuaries and the Institute and Faculty of Actuaries generally. Most recently, the Prudential Regulation Authority has issued further guidance concerning its expectations for the UK insurance industry regarding the development of an approach to disclosure on and management of the financial risks from climate change, while a Parliamentary Committee has demanded public clarification from UK pension scheme trustees regarding their degree of engagement with incorporating climate-related financial risks into their investment decision-making. The aim of this paper is to identify the dominating factors of the current evolvement of UK insurance companies’ and pension schemes’ climate risk disclosure practices. This paper analyses both the nature and extent of changes in the risk reporting practices of these entities that have evolved in order to meet these demands for increased accountability. We first analyse relevant sections of latest annual reports produced by a sample of 15 UK insurance companies and 15 pension schemes. We find only limited alignment of insurance firm and pension scheme annual reports with the 11 specific Task Force on Climate-Related Financial Disclosure’s (TCFD) recommended disclosures. We also examine what key financial risk and/or other organisational characteristics are most closely associated with the degree of alignment with TCFD specified disclosures related to governance, strategy, risk management and performance metrics. We find that incentives facing sample insurance companies to align their climate-related disclosures with TCFD recommendations are related to their management of reputation risk (measured on the basis of size and type of business). Whereas the incentives facing pension schemes are related to the desire to reduce information asymmetry (measured by liability risk) among their stakeholders concerning this issue. Further, consistent with a stakeholder theory explanation, it appears that only a minority of large, publicly listed insurance companies and large local government pension schemes are taking action to report on their actions to mitigate climate risk. We also discuss examples of best practice climate risk reporting. The implications for the actuarial profession in engaging with climate risk are discussed in line with the findings of the study.

On Climate Change Risks of Long-Term Socio-Economic Development in Russia

2019 ◽  
pp. 79-95
Author(s):  
N.E. Terentiev
Keyword(s):  
Climate Change ◽  
Economic Development ◽  
Technological Innovation ◽  
Global Climate Change ◽  
Global Climate ◽  
Climate Risk ◽  
Climate Change Risks ◽  
Socio Economic Development ◽  
Management Policies

Based on the latest data, paper investigates the dynamics of global climate change and its impact on economic growth in the long-term. The notion of climate risk is considered. The main directions of climate risk management policies are analyzed aimed, first, at reducing anthropogenic greenhouse gas emissions through technological innovation and structural economic shifts; secondly, at adaptation of population, territories and economic complexes to the irreparable effects of climate change. The problem of taking into account the phenomenon of climate change in the state economic policy is put in the context of the most urgent tasks of intensification of long-term socio-economic development and parrying strategic challenges to the development of Russia.

The Impact of Climate Change on Storage-Yield Curves for Multi-Reservoir Systems

1999 ◽  
Vol 30 (2) ◽  
pp. 129-146 ◽  
Author(s):  
N. R. Nawaz ◽  
A. J. Adeloye ◽  
M. Montaseri
Keyword(s):  
Climate Change ◽  
Surface Fluxes ◽  
Runoff Coefficient ◽  
Impact Study ◽  
Yield Functions ◽  
Reservoir Systems ◽  
English System ◽  
Multiple Reservoir ◽  
The Impact ◽  
Impacts Of Climate Change

In this paper, we report on the results of an investigation into the impacts of climate change on the storage-yield relationships for two multiple-reservoir systems, one in England and the other in Iran. The impact study uses established protocol and obtains perturbed monthly inflow series using a simple runoff coefficient approach which accounts for non-evaporative losses in the catchment, and a number of recently published GCM-based scenarios. The multi-reservoir analysis is based on the sequent-peak algorithm which has been modified to analyse multiple reservoirs and to accommodate explicitly performance norms and reservoir surface fluxes, i.e. evaporation and rainfall. As a consequence, it was also possible to assess the effect of including reservoir surface fluxes on the storage-yield functions. The results showed that, under baseline conditions, consideration of net evaporation will require lower storages for the English system and higher storages for the Iranian system. However, with perturbed hydroclimatology different impacts were obtained depending on the systems' yield and reliability. Possible explanations are offered for the observed behaviours.

scholarly journals Climate change impacts the epidemic of dysentery: determining climate risk window, modeling and projection

2019 ◽  
Vol 14 (10) ◽  
pp. 104019 ◽  
Author(s):  
Chenlu Li ◽  
Xiaoxu Wu ◽  
Duoying Ji ◽  
Jianing Liu ◽  
Jie Yin ◽  
...  
Keyword(s):  
Climate Change ◽  
Climate Change Impacts ◽  
Climate Risk

scholarly journals Financial Stability and Climate Change

2020 ◽  
Vol 9 (3) ◽  
pp. 27-43
Author(s):  
Nikola Fabris
Keyword(s):  
Climate Change ◽  
Financial Institutions ◽  
Financial Stability ◽  
Financial Risk ◽  
Negative Impact ◽  
Weather Conditions ◽  
Extreme Weather ◽  
Financial Risks ◽  
Balance Sheets ◽  
Sea Levels

AbstractFighting climate change is one of the biggest challenges in the 21st century. Climate change that leads to global warming has been increasingly visible in our environment. Extreme weather conditions such as hurricanes, floods, and droughts have been escalating and their acceleration can be expected in the future. They cause changes in sea levels, epidemics, large fires, etc. Increasingly, we are witnessing minor or major damage caused by these extreme weather conditions. Numerous studies have proven that climate change has negative impact on economic growth and prosperity. However, this paper starts from the premise that in addition to unequivocally identified threats, climate change also creates opportunities.The paper reaches a conclusion that climate change can adversely affect balance sheets of financial institutions. Therefore, climate change is a source of financial risk and thus a part of the mandate of central banks and supervisors in preserving financial stability. This type of risk has not been given enough attention by either supervisors or financial institutions over the past period. This paper develops a model for managing financial risks as a result of climate change.

scholarly journals CLIMATE CHANGE IMPACT STUDY ON FLOOD RISK IN LOWER WEST RAPTI RIVER BASIN USING MRI-AGCM OUTPUTS

2013 ◽  
Vol 69 (4) ◽  
pp. I_451-I_456
Author(s):  
Edangodage D.P. PERERA ◽  
Akiko HIROE ◽  
Kazuhiko FUKAMI ◽  
Toshiya UENOYAMA ◽  
Shigenobu TANAKA
Keyword(s):  
Climate Change ◽  
River Basin ◽  
Flood Risk ◽  
Climate Change Impact ◽  
Impact Study ◽  
Change Impact ◽  
Climate Change Impact Study

Financial Risks of Climate Change

2020 ◽  
pp. 43-62
Author(s):  
Janis Sarra
Keyword(s):  
Climate Change ◽  
Indigenous Peoples ◽  
Climate Change Impacts ◽  
Market Risk ◽  
Investment Risk ◽  
Financial Risks ◽  
Business Practices ◽  
Planetary Boundaries ◽  
New Business ◽  
Policy Risk

Chapter 3 examines a number of financial risks to the viability of businesses due to climate change. It describes how the acute and chronic impacts discussed in Chapter 2 create new business risks, both physical risks and transition risks. It explores technology risk, market risk, and investment risk, risk to the company’s reputation for failure to adopt a climate plan, and policy risk. It examines the implications for investors if assets are stranded or reduced in value. It introduces concerns regarding planetary boundaries and what impacts may be irreversible once they are crossed. This chapter also examines how women are disproportionately affected by climate change impacts and why Indigenous peoples are deserving of special attention and respect in developing policy and business practices related to climate change.

A Framework for Understanding Adaptation by Manufacturing Industries

2017 ◽  
pp. 302-313
Author(s):  
Saon Ray
Keyword(s):  
Climate Change ◽  
Sea Level Rise ◽  
Sea Level ◽  
Temperature Rise ◽  
Manufacturing Industries ◽  
Climate Risk ◽  
The Face ◽  
Regulatory Barriers ◽  
The Impact ◽  
Medium Firms

This chapter discusses what constitutes adaptation responses by firms in the face of climate change. There are four integral components of adaptation activities undertaken by firms: assessment of risk, understanding of vulnerability, understanding the regulatory barriers to overcome the vulnerability, and, finally, adoption of policies to overcome the vulnerability. While it is easy to understand these components separately, their interdependencies make the overall picture more complicated. Also complicating the issue is the fact that most small and medium firms do not have the capacity and resources to predict the impact of such changes on their operations, and hence, to quickly make the adjustments necessary to overcome them. The response of firms also depends on the nature of the climate risk they face, whether it is sea-level rise, or temperature rise.

Sign in / Sign up

Export Citation Format

Share Document