Susanne Schade’s Post

Excited to share that I'm speaking at RiskMinds International 2024, 18-21 November 2024!  Looking forward to discussing 'Emerging markets and climate risk in a rapidly changing world - What are the key drivers for investment? What are the hidden risks? Join Us!!  #riskmanagement #CreditGuarantees# RiskMindsDBGGuarantee

This week's launch of the Physical Climate Risk Investor Playbook offered key insights into how investors can effectively assess and manage physical climate risks. The panel of experts highlighted the value to investors in taking adaptation and resilience action, and examined the practical steps to be taken in integrating physical climate risk assessment and management in investment activity. If you missed the webinar, you can still access the playbook and dive into the strategies discussed. Read more and download the playbook here: https://ow.ly/4z2Z50TX1Ys #ClimateRisk #ResilienceFinance

The ARIC Physical Climate Risk investor playbook launched last week provides investors with practical steps to identify, assess and manage physical climate risk in investments. As seen globally, climate change is already having profound negative impacts upon people and livelihoods, and there is urgent need for effective adaptation and resilience measures across infrastructure, value chains, business operations and homes in particular. We hope this playbook supports investment actors to meaningfully integrate adaptation and resilience in investment decisions, and capture the benefit case that adaptation and resilience presents. Both United Nations Environment Programme Finance Initiative (UNEP FI) and ARIC will be be undertaking further work in this space in the coming months so more to come here. Please find the link to the playbook here - https://lnkd.in/eRfZEJT2 Along with a recording of our launch event on Tuesday where Dr. Chiara Trabacchi shared an overview of the playbook material followed by a panel discussion between Alec Martin, Anne Chataigné FRSA and Justus Dokter on the key playbook themes, and wider A&R investment experiences and actions -  https://lnkd.in/efhfAsTz For any questions relating to the playbook please do get in touch with myself, the ARIC team or our wider partners who collaborated on its development. Paul Smith Amal-Lee Amin Niccolo' Diarena, CFA, SCR Marko Berglund Nadra Baubion Tounsi Charissa Bosma Kayenat Kabir, PhD Giulia Picano Jens Hoenerhoff Daniel B. Jean-Hugues DE FONT-REAULX Noah J. Wescombe Craig Davies Rob Wilson Alison Steward Lea Lorkowski Wenmin Li Hiu-Yan Cheng Melanie O'Toole Vanesa Rodríguez Osuna, PhD Pierre-Yves COLINET Roman Roehrl Guido van Heugten Jagjeet Sareen Valentina Ramírez, CFA Dr Nicola Ranger Roberto S.

Investors Beware: Climate Risk is a Ticking Time Bomb ⏱️ The overwhelming majority of investors surveyed (93%) believe climate change will significantly impact investment performance in the next 2-5 years. However, a mere 4% think this risk is priced into today's holdings. This disconnect highlights a critical gap in risk management. Investors are well aware of the threat but not taking action. Those who fail to manage climate risk proactively will fall behind... What are your thoughts? Are you factoring climate change into your investment strategy? #climaterisk #sustainability #investment

„I never thought about the link between climate change and insolvency“ … is probably what I heard most when I told people about my research at last week’s conference. So instead of writing about how great INSOL Europe was and how many amazing people I met (both true), I thought I’d share what I talked about in my presentation. In my research, I look at five climate-related financial risk categories that could push companies to the brink of insolvency (or beyond). Below is an overview of these risks. Over the next few weeks, I’ll dive deeper into each of them and explain how they can cause (or contribute to) financial distress. 👉 Stay tuned for insights that could change the way you view climate risks!

Tony Hughes, Ph.D. 🤝 Robert Eccles Tony's latest for 'Unpacking Climate Risk' reflects on a recent contribution to the climate-related financial regulation debate from the redoubtable Professor Eccles (https://lnkd.in/gUAdgm_9) Both writers point out that conflating climate financial risk and climate impact has been a net negative for the planet, and possibly for financial regulators themselves, who have come in for a great deal of scrutiny with (arguably) very little to show for it. Once again, I'm not totally in alignment with Tony or Bob on this. The original sin was not embedding "double materiality" into climate risk management rules and regulations -- which was understandable in those jurisdictions where regulators interpreted their mandates narrowly. If unpriced externalities *had* to be accounted for by financial institutions then climate impact and climate risk would be much more closely aligned than they are now. Subscribe to Unpacking Climate Risk to read Tony's piece in full 👇 https://lnkd.in/gY6Yy4Jc https://lnkd.in/gkYwZY9P #climaterisk #climatechange #centralbanks #riskmanagement #ESDG #sustainability

How can short-term climate scenarios enhance #climateresilience for financial institutions? Our latest report and Excel tool address the crucial gap in short-term scenario analysis, focusing on near-term risks, economic volatility, and systemic vulnerabilities. Produced by UNEP FI's Risk Centre in partnership with the National Institute of Economic and Social Research (NIESR), this report provides asset managers, insurers, bankers, and investors with the tools to integrate climate commitments into short-term planning strategies. By exploring macroeconomic, transition, and physical risk scenarios, our Excel-based tool enables effective management of short-term climate risks. UNEP FI continues to deliver essential frameworks to help financial institutions navigate immediate climate challenges. Discover how these insights can fortify your approach to climate risk management. Read more: https://ow.ly/IN7G50SxmaQ

💡 📊 📈 New UNEP FI-NEIRS Short-term Climate Scenarios Narratives developed for bankers, asset managers, insurers, and investors. (Report & Spreadsheet visualization tool included) #climatescenario #climateresilience #climaterisk #unepfi #neirs #banking #assetmanagement #insurance #ESGinvesting

New research by Stefano Battiston and colleagues from the University of Zurich - Department of Finance highlights critical flaws in current climate risk assessment techniques. 1️⃣ Simplified data approaches may lead to significant underestimation of financial losses for businesses and investors. 2️⃣ Current climate risk assessments often use simplified and proxy data, potentially underestimating financial losses by up to 70%. 3️⃣ Detailed asset-level data are crucial for accurate risk assessment and climate adaptation planning. The study emphasizes the importance of considering "tail risks" from extreme climate events, which can lead to much higher than average impacts. Full Article 👉 https://bit.ly/3WdPWFC #climaterisk #climatedata #SustainableFinance #finance

Doing nothing on climate change is like knowing you have high blood pressure but don't need to change your diet, exercise or other habits. Check out this video!