Climate risk – Special report 2020

As governments worldwide focus on the coronavirus (Covid‑19) pandemic amid plummeting demand for fossil fuels, it may seem climate change has dropped down the global agenda. 

The long-term impact of Covid‑19 on green investment and climate movement is unclear, but it is widely thought that low oil prices and economic recession will slow the transition to the low-carbon economy. 

And, still reeling from the economic crisis caused by Covid-19, regulators and central banks will be at pains to avoid another systemic financial meltdown due to the transition to a low-carbon world. The onus will once again be on individual firms to assess and mitigate their own risk exposures. 

It’s no easy feat. But firms that don’t assess the climate risk in their portfolios, or hedge or divest their exposures accordingly, could see some of their assets lose significant value over time. In the meantime, they may fall foul of increasingly stricter regulation.

Download the full 2020 Climate risk special report in PDF format