ClimINVEST: “Assessing climate physical risks for financial decision makers”

24 June 2020

The physical impacts of climate change are expected to worsen over the next few decades, threatening financial investments and activities. Financial decision makers are asked and need to assess these physical climate risks in order to anticipate and manage these risks.

Investors are “in a race to find the best models of climate risks” according to Bloomberg, it reports cautions against potential black boxes approaches and the need for scientific expertise in such studies.

The Climinvest Project brings climate scientists and investors together to provide transparency on methodology for physical climate risk assessment. As part of this project, Carbone 4 presents its new report that introduces a new framework to help decision makers understand risk assessment implementation issues and build capacity for analyzing and managing risks. Commonalities and differences across sectors, type of portfolios and data availability context are presented through several case studies. Challenges and opportunities ahead are identified to ensure climate risk assessments provide useful and rigorous information to financial decision makers.

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