June 2020

ClimINVEST: "Assessing climate physical risks for financial decision makers"

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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The webinars give introduction to key topics to understand physical climate risk (climate modeling and calculating climate risk) and dives into different climate hazards (heat, flooding) and case studies on physical climate risk (Shopping center in the Netherlands and railways in Norway).