Climate-related risks management
Assets values and business operations are increasingly affected by climate-related risks resulting from the effects of climate change and the adaptation and mitigation measures taken to respond to these effects. Measuring the exposure of businesses to environmental risks requires quantitative models that can respond to an economy in transition.
From the perspective of climate change, the most predictable and highest confidence outcome of global warming
is the increase of local heat levels in most of the world (
This makes predicting the impacts of changing thermal conditions more reliable than estimating the evolution of storm patterns, rainfall regimes, wind and other aspects of the consequences of climate change.
Water related risks
Climate change is affecting many aspects of the water cycle with dramatic impacts like floods or severe droughts. Water stress is also highlty impacted by the pollution of soils, rivers and oceans as well as by the risky and reckless management of fresh water.
Stranded assets risk management
A confluence of recent developments have introduced new risk factors for environmentally unsustainable assets. Environmental challenges such as climate change, pollution and water constraints have major impacts on the downward revaluation or conversion to liabilities of assets but thet are not the only ones. New government regulations, evolving social norms, new consumer behaviors and innovation will cause investors to be exposed to risks and uncertainty in a variety of sectors and geographies.