Carbon Asset Risk: Discussion Framework — WRI and UNEP-FI Portfolio Carbon Initiative

World Resources Institute | UN Environment Programme Finance Initiative

[] …Climate change is a risk that, while significant, is oftentimes misunderstood by the financial community. A warmer world introduces new, complex and interwoven layers of risks ranging from physical, financial, regulatory and reputational.

So WRI and the UNEP Finance Initiative worked with more than 150 participants from the financial sector to create the “Carbon Asset Risk Discussion Framework,” a tool to help financial institutions undertake the difficult task of identifying and understanding climate-related risks to their portfolios…

[WRI] This report provides objective, fact-based guidance to finance professionals for evaluating their exposure to the non-physical risks of climate change, called carbon asset risk. This type of financial risk is driven by non-physical factors during the transition to the low-carbon economy: changing public policy and private sector regulation, rapidly evolving technologies, unpredictable economic markets, and shifting public opinion.


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