Bankers, UN and scientists help assess climate risks for finance

04/26/2018 - Together, 16 banks, the United Nations, business consultants and scientists produced first guidance to help the financial industry become more transparent on climate-related risks and opportunities. The report they jointly published, entitled “Extending our horizons”, is based on economic scenarios provided by the Potsdam Instititute for Climate Impact Research, the International Institute for Applied Systems Analysis, and the International Energy Agency. The innovative methodology will support banks to implement the ground-breaking recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (FSB TCFD). It focuses on changes that the transition to a low-carbon economy will present to businesses. A complementary report on the physical impacts of climate change for businesses is planned for release in late June.
Bankers, UN and scientists help assess climate risks for finance
UNEP Finance Initiative climate risk report cover (cutout)

"Two-degree scenarios describe a new world - a world with CO2-free energy production and land use that takes up CO2 from the atmosphere instead of releasing it,” says Elmar Kriegler, senior scientist at the Potsdam-Institute for Climate Impact Research, who contributed to the report. “In the Paris Agreement, almost all governments worldwide decided to limit global warming to less than two degrees Celsius in order to stabilize our climate. It is therefore extremely important that banks and companies can take into account the possibility of this two-degree world in their investment decisions. Only those who see the possibilities can adjust their expectations for the future - and thus make this future possible. We are pleased to be able to offer the scientific basis for this together with the UN, the banks and other researchers. We have computed the risks and opportunities. Now it is up to the financial sector to use this. Big money also means big responsibilities."

Weblink to the report "Extending our Horizons: Assessing Credit Risk and Opportunity in a Changing Climate":

Weblink to the UNEP press release:

Webinars will be held at 10.00 CEST and 16.00 CEST on 15th May for those interested in hearing more about the new methodology. Speakers will include risk and investment management experts from Oliver Wyman, climate scientists from the Potsdam Institute for Climate Impact Research (PIK) and the International Institute for Applied Systems Analysis (IIASA), and representatives from the participating banks. Further information here: