Green boxes? An overview of climate risk tools and analytics

Paul Smith

Since the Taskforce on Climate-related Financial Disclosure (TCFD) was launched in 2017, finance sector awareness and support for forward-looking scenario analysis and risk assessment has grown exponentially. The TCFD, led by Michael Bloomberg, proposed a framework for private corporations to assess, manage and report on the climate-related risks they might face, not only in terms of the physical impacts of climate change but also from the policies to transition the global economy from high-carbon industries, as well as reputational and litigation risks associated with corporate strategy. Disclosure is a key element of this framework, as market-useful information should allow investors to identify and price-in the potential risks to firms from climate change. This “outside-in” approach to climate risks has caught the zeitgeist in the wake of the 2015 Paris Agreement, raising awareness of climate change across the private sector by focusing on potential climate-related impacts to company assets and revenue.

However, the gap between nominal support for the TCFD and actual disclosure of climate-relevant financial impacts in their 2021 consultation paper on metrics, targets and

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here