Climate Risk Management
Beyond the Horizon:
New Tools and Frameworks for Transition Risk Assessments from UNEP FI’s TCFD Banking Programme
This report covers the three primary enhancements to transition risk assessments undertaken by programme participants.
First, sector-specific working groups participants explored transition risks in a broad range of economic sectors.
Then, Oliver Wyman helped UNEP FI build a user-friendly webtool, Transition Check, to run transition risk assessments using the latest climate scenarios (including the reference scenarios produced by the Network for Greening the Financial System).
Finally, the participating banks undertook a comprehensive transition risk heatmapping exercise. This exercise generated insights into how climate-sensitive sectors may be impacted during a low-carbon transition. The heatmaps produced not only evaluate transition risks for sectors overall but also for more granular sub-sectors as well.
Dev notes: here
English | 33 pages | Download
Negative Emission Technologies (NETs) are the next investment frontier and offer trillion dollar upside opportunities for investors.
1 Within NETs, forest-related Nature-Based Solutions (NBS) could generate
US$800 billion in annual revenues by 2050, worth US$1.2 trillion today in NPV terms,2 surpassing the current market capitalisation of the oil & gas majors.3 Hence, an entire new industry may emerge that values carbon stored in vegetation and soil, unlocking new business models and investment opportunities for avoided deforestation, reforestation and afforestation
Dev notes: here
English | 48 pages | Download