Search
  • sarah1751

Henrique Pereira & Melina Amoni: RISK ANALYSIS AND ADAPTATION TO CLIMATE CHANGE

Updated: Oct 4, 2021

henrique.pereira@waycarbon.com

melina.amoni@waycarbon.com





Abstract


Figure 1. Detailed framework of the variables composing a climate risk index


Climate change poses the greatest long-term threat to the global economy, creating material risks to human and natural systems. The current warming trend, based on the policies to mitigate greenhouse gas (GHG) emissions in progress, is 2.9°C. And, in this scenario, the world economy could shrink 18% over the next 30 years[1]. However, despite their relevance, climate risks are poorly understood by the market and rarely integrated into corporate risk management systems. As a result, the weather exposures of assets and operations remain unpriced. An estimated 5,000+ listed companies and 12.5 million assets, such as buildings, factories, warehouses and distribution centers, are highly exposed to climate risk[2] and collectively carry USD8.7 trillion in financing transactions. It is not surprising, therefore, that the Financial Stability Board (FSB) considered climate risk to be a systemic risk due to its complex interrelationships in the economic system and its potential consequences for the financial sector. In the context of risk management, physical risks threaten the integrity of structures and assets and can directly or indirectly affect operations and production chains causing damage and losses. In an increasingly hot world, extreme weather events have become progressively more frequent and intense, making quantitative assessment of physical risk essential. The use of projections that consider different climate sensitivity scenarios provides valuable information for risk management and adaptation strategies. WayCarbon has developed a pioneer cloud technology that allows the identification and quantification of climatic risk in many horizons until 2100. MOVE is a tool that allows companies and investors to identify and quantify climate risks in different contexts: assets, companies, sectors and supply chains.

[1] Source: UNEP-FI, TCFD Banking Pilot Projects (2017 – 2021). Available at: https://www.unepfi.org/climate-change/tcfd/tcfd-for-banks/. Accessed on June 4th, 2021. [2] Source: UNEP-FI, TCFD Banking Pilot Projects (2017 – 2021). Available at: https://www.unepfi.org/climate-change/tcfd/tcfd-for-banks/. Accessed on June 4th, 2021.



MOVE__Institute Of Risk Management in London
.pdf
Download PDF • 6.01MB

 

Speaker biography


Henrique Pereira holds a bachelor's degree in International Relations and a master's degree in Environment and Development from the London School of Economics and Political Science (LSE). Henrique is co-founder and Director of WayCarbon, considered a Brazilian reference in consulting and in the development of technological and innovation solutions focused on sustainability, environmental asset management and in the development of strategies a low-carbon economy.

 

If you have any queries please contact rose@satarla.com

18 views0 comments

Recent Posts

See All

This article is a summary and commentary of the speakers and topics covered at this event, organised by the Institute of Risk Management’s Innovation Special Interest Group, in partnership with: Satar