Climate Risk Measurement and Management New With Guarantee Pass

Climate Risk Measurement and Management New With Guarantee Pass Measuring and defining climate risks Company Level Transition Risk Data GHG Protocol : 1. emissions resulting directly from the company's operations 2. upstream emissions from purchased electricity 3. all other upstream emissions from supply chains as well as downstream emissions resulting from the use or disposal of products and services sold by the company. corporate carbon footprint Few firms disclose all 3 scopes of the GHG Protocol Company Level Physical Risk Data General data is provided by global climate models developed by climate scientist for the IPCC report, Systemic Risks Financial Stability Corporate Greenhouse gas emissions Emission trajectories Company Level scores Climate Risk within Enterprise Risk Management A holistic modus operandi across an entire firm Actions and responsibiliites across 5 areas: 1. Governance 2. Strategy 3. Perfomance 4. Review 5. communication Risk Management A structured approach to monitoring, measuring and managing exposures to reduce potential impacts of uncertain occurrences. Climate Risk management helps mitigate the impacts of climate change both physical and transition impacts. Risk Governance The top-down process and guidance that directs risk management activities to align with and support the overall enterprise. Climate risk governance built into the legal and compliance processes - formalize and internal risk management procedures and oversight. climate risk culture 1. Company culture 2. Mission and core values 3. Tone of senior leadership 4. Employee behaviors and initiatives Financial Risks 1. Operational 2.Market 3. Insurance 4. Liquidity 5. Credit 6. Sovereign Microeconomic Effects Affecting individual business and households - this relates to transition risks - households can be impacted by property damage, business interruption, loss of income, changes in demand, and falls in asset valuation through asset stranding Operational Risk The risk inherent in doing business, and it reflects potential losses from inadequate or failed internal processes, systems, human error, or outside events such as extreme weather or terrorist attacks