Task Force on Climate-Related Financial Disclosures
  • About
  • Recommendations
  • Publications
  • Support TCFD
    • Press Releases
    • Media Coverage
  • Knowledge Hub
Knowledge Hub MenuClose Menu
  • Knowledge Hub Home
  • Resources
    • Resource database
    • Case Studies
    • Report Database
  • Getting Started
    • Introduction
    • Governance
    • Strategy
    • Risk Management
    • Metrics and Targets
    • Scenario Analysis
    • FAQs
  • Educational Resources
    • Online courses
    • Climate Risk Card Game
    • Downloadable Training Pack
  • TCFD 建议

TCFD Knowledge Hub

 Back to Resources
Article name & author

Climate Financial Risks: Assessing Convergence, Exploring Diversity

Author: Council on Economic Policies

Industry Group: All Industry Groups

Research / Insights - 2020

Climate risks are now fully recognized as financial risks by asset managers, investors, central banks, and financial supervisors. As a result, the integration of climate risk metrics into risk management processes is moving up agendas worldwide. In that context, a rapidly growing number of market participants and financial authorities are exploring which metrics to use to capture climate risks, and to what extent the use of different metrics delivers heterogeneous results. This discussion note takes a first step in analyzing the convergence in assessments of climate-related transition risks across metrics providers, based on the ECB corporate bond portfolio. Our findings show that firms’ risk assessments across metrics are fairly heterogeneous but tend to converge on which firms are most and least exposed to transition risks. We also show that the temperature targets and time horizons underlying the metrics matter, although moderately, for the assessment of firms’ risk exposure and that providers using similar methodologies tend to deliver more convergent assessments. Our findings contribute to the growing recognition that asset managers, investors, central banks and financial supervisors can and should use available metrics to better integrate climate risks into risk management and financial supervision.

 Was this resource useful?
Keywords: Climate-related risk, Financial impacts
GO TO RESOURCE
Loading...
Report a Problem
Case Study

Powered by:

CDP Logo

This site is operated by CDP.

  • About the Hub
  • FAQ
  • Terms & Conditions
  • Privacy Policy
  • Cookie Policy

Contact Us

[email protected]

Newsletter

To receive updates about the platform and its launch, sign up to the newsletter

SUBSCRIBE

The newsletter is operated by CDP*

*CDP Worldwide, registered charity number 1122330, a company limited by guarantee 05013650, headquartered at CDP Worldwide, 60 Great Tower Street, London EC3R 5AZ, United Kingdom. CDP Worldwide is regulated by the Charity Commission.