Transitioning from rhetoric to action: Integrating physical climate change and extreme weather risk into institutional investing
This report presents a practical means to factor climate change and extreme weather risk into institutional investing. Climate Risk Matrices (CRM) offer industry-specific standardization and are a practical tool to prioritize the top means by which climate-related events may negatively impact business continuity, while simultaneously identifying actions investors should expect a company to take to mitigate prioritized risks.
Six CRMs are profiled in this report:
- Electricity Transmission & Distribution;
- Commercial Real Estate;
- Banking (Residential Mortgage Providers);
- Property and Casualty Insurance (Personal Home Insurance);
- Hydroelectricity Generation, and;
- Wind Electricity Generation.
This report should catalyze action – and diminish complacency – by the majority of institutional investors who do not factor physical climate risk into portfolio management. This report offers a practical tool (CRMs) that investors can use to assess the exposure of investee companies to extreme weather and what measures need to be put into place to reduce those risks.
Explore further
