Assessing and disclosing climate change risks

摘要

Projections of the economic cost of climate change have always been somewhat dire (e.g. Stern (2006)); and have been mostly ignored by policy makers. However, the FSB have recommended financial risks due to climate change should be disclosed by all publicly listed companies. This is driving the financial sector to seriously consider the implications of climate change, and the results are likely to be sobering. With an understanding of risk comes investor pressure to minimise the risk, and this may well drive mitigation efforts above and beyond those achieved via the 'heads-of-state' level Paris Agreement.