As global climate change continues climate-related risks are a significant threat to much of the economy –and the pandemic hit fast-forward especially on many of the transition risks, putting companies under pressure to map out their risks and take a proactive response. Leading organizations understand that climate-compatible approaches not only improve resilience, but create huge opportunities in terms of new businesses, products and services.
On the investors side, many players such as private equity (PE) firms, pension funds or other investors have announced ambitious targets and are taking bold action to decarbonize their portfolios. As one example, nearly 100 PE firms including large players like Coller Capital, Permira Holdings, and Amundi, representing over $700 billion in assets under management, have signed up to the Initiative Climat International (iCI). to work towards forward-looking analysis of climate-related financial risk, in line with the recommendations of the TCFD. Regulation is another strong driver: The EU Action Plan on Sustainable Finance has led to a number of fundamental regulatory initiatives in the field of sustainable finance and corporate risk assessment and the UK recently announced its intention to make TCFD-aligned disclosures mandatory across the economy by 2025. TCFD is the guiding framework for climate-related risk exposure in many of these initiatives, and many companies are taking first steps to understand TCFD and assess their risks accordingly.
In our webinar, we discuss sector specific risk drivers and explore how these drivers are leading to mitigation and adaptation. We also explore the changing regulatory landscape, including mandatory disclosure of climate change risks. Finally, we will turn to from risk mitigation to exploring competitive advantages. Climate-aware, low-carbon investment is a huge trend, and we explore how decarbonization is taking center stage in investors’ portfolio strategies.