Assess the likelihood, timing and scope of climate risks
In Climate Risks: An Investor’s Field Guide to Identification and Assessment, financial analyst Bob Buhr delivers a risk-based framework for classifying and measuring potential climate risks at the firm level, and their potential financial impacts. The author presents a “climate risk taxonomy” that encompasses a broad range of physical, transition and natural capital risks that may impact a firm’s financial profile.
The taxonomy presented in the book will be of interest to investors and lenders involved in:
- The identification and assessment of the potential scope and impact of a wide range of risks that might normally remain outside of more traditional risk or credit analysis, usually for horizon issues;
- The determination of the points at which climate risks may crystallize into real and significant financial exposure
- The assessment of the relative aggregate riskiness of portfolios exposed to climate and natural capital risks at the firm level
A rigorous and practical toolkit for the assessment and measurement of a broad range of potential climate risks, this book offers fund managers, portfolio analysts, risk experts, and other finance professionals a clear blueprint for assessing potential financial impacts at firms arising from climate change.
Table of Contents:
Preface ix
Chapter 1 Introduction: Why We Need a Risk Taxonomy 1
Chapter 2 What Should a Climate Risk Taxonomy Do? 19
Chapter 3 The Climate Risk Taxonomy and Its Constituents 45
Chapter 4 Physical Risks 57
Chapter 5 Adaptation Risks 95
Chapter 6 Mitigation Risks 131
Chapter 7 Natural Capital Risks 193
Chapter 8 Concluding Observations 217
Selected Bibliography 219
Organizational Information 223
Acknowledgments 227
About the Author 229
Index 231
About the Author :
BOB BUHR, PHD, is an Honorary Research Fellow at Imperial College’s Centre for Climate Finance & Investment. He spent 30 years as a corporate bond analyst and is currently engaged with several NGOs on an array of climate-related issues, including natural capital and adaptation risks. He has published several reports on topics like green bonds, climate-vulnerable countries, and sovereign risks.
