Managing Climate Risk In The U S Financial System

Author : Leonardo Martinez-Diaz,Jesse M. Keenan
Publisher : U.S. Commodity Futures Trading Commission
Page : 196 pages
File Size : 40,7 Mb
Release : 2020-09-09
Category : Science
ISBN : 9780578748412

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Managing Climate Risk in the U.S. Financial System by Leonardo Martinez-Diaz,Jesse M. Keenan Pdf

This publication serves as a roadmap for exploring and managing climate risk in the U.S. financial system. It is the first major climate publication by a U.S. financial regulator. The central message is that U.S. financial regulators must recognize that climate change poses serious emerging risks to the U.S. financial system, and they should move urgently and decisively to measure, understand, and address these risks. Achieving this goal calls for strengthening regulators’ capabilities, expertise, and data and tools to better monitor, analyze, and quantify climate risks. It calls for working closely with the private sector to ensure that financial institutions and market participants do the same. And it calls for policy and regulatory choices that are flexible, open-ended, and adaptable to new information about climate change and its risks, based on close and iterative dialogue with the private sector. At the same time, the financial community should not simply be reactive—it should provide solutions. Regulators should recognize that the financial system can itself be a catalyst for investments that accelerate economic resilience and the transition to a net-zero emissions economy. Financial innovations, in the form of new financial products, services, and technologies, can help the U.S. economy better manage climate risk and help channel more capital into technologies essential for the transition. https://doi.org/10.5281/zenodo.5247742

Author : Saloni P. Ramakrishna
Publisher : Walter de Gruyter GmbH & Co KG
Page : 328 pages
File Size : 53,6 Mb
Release : 2023-12-04
Category : Business & Economics
ISBN : 9783110757958

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Climate Change Risk Management in Banks by Saloni P. Ramakrishna Pdf

Banks, like other businesses, endeavor to drive revenue and growth, while deftly managing the risks. Dubbed the next "frontier" in risk management for financial services, climate related risks are the newest and potentially the most challenging set of risks that banks are encountering. On the one hand, banks must show their commitment to becoming net zero and, on the other, help their customers transition to more sustainable operations, all this while managing climate-related financial risks. It is a paradigm shift from how the banking industry has traditionally managed risks as climate change risks are complex. They are multilayered, multidimensional with uncertain climate pathways that impact real economy which in turn influences the financial ecosystem in myriad ways. Climate Change Risk Management in Banks weaves the complete lifecycle of climate risk management from strategy to disclosures, a must-read for academics, banking professionals and other stakeholders interested in understanding and managing climate change risk. It provides much-needed insights, enabling organizations to respond well to these new risks, protect their businesses, mitigate losses and enhance brand value. Saloni Ramakrishna, an acknowledged financial industry practitioner, argues that given the uncertain and volatile climate paths, complex geopolitical patterns, and sustainability challenges, banks and business professionals will benefit from a wholistic approach to managing climate change risks. The book provides a blueprint and a cohesive framework for embracing and maintaining such an approach, in a simple and structured format.

Author : Elisabetta Gualandri
Publisher : Springer Nature
Page : 204 pages
File Size : 40,9 Mb
Release : 2024-04-30
Category : Electronic
ISBN : 9783031548727

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Climate Risk and Financial Intermediaries by Elisabetta Gualandri Pdf

Author : OECD
Publisher : OECD Publishing
Page : 360 pages
File Size : 51,9 Mb
Release : 2021-11-01
Category : Electronic
ISBN : 9789264439665

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Managing Climate Risks, Facing up to Losses and Damages by OECD Pdf

This report addresses the urgent issue of climate-related losses and damages. Climate change is driving fundamental changes to the planet with adverse impacts on human livelihoods and well-being, putting development gains at risk.

Author : Thomas Walker,Dieter Gramlich,Mohammad Bitar,Pedram Fardnia
Publisher : Springer Nature
Page : 453 pages
File Size : 53,6 Mb
Release : 2020-06-10
Category : Business & Economics
ISBN : 9783030388584

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Ecological, Societal, and Technological Risks and the Financial Sector by Thomas Walker,Dieter Gramlich,Mohammad Bitar,Pedram Fardnia Pdf

Today’s financial sector faces multiple challenges stemming from ecological, societal, and technological risks such as climate change, political extremism, and cyber-attacks. However, these non-traditional risks are yet to be fully identified and measured, in order to ensure their successful management. This edited collection sheds light on the topic by examining the unique measurement and modelling challenges associated with each of these risks, and their interaction with finance. Offering a comprehensive analysis of non-traditional finance risks, the authors provide the basis for developing appropriate risk management techniques. With new approaches to protect against emerging threats to the financial sector, this edited collection will appeal to academics researching sustainability, development finance, and risk management, as well as policy-makers and practitioners within the banking sector.

Author : Reuben Muhindi Wambui
Publisher : Graduate Institute Publications
Page : 128 pages
File Size : 49,5 Mb
Release : 2021-04-02
Category : Business & Economics
ISBN : 9782940600267

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Climate-Related Financial Risks for Kenyan Banks by Reuben Muhindi Wambui Pdf

This study analyses the climate risk exposure of Kenyan banks given the greenhouse gas (GHG) emissions represented by their sectoral loan composition and their relative funding of climate risk through their loan portfolios. This is achieved by constructing two climate-relevant indices: Emissions Exposure (EEi), a measure of a bank’s climate risk exposure through its loan portfolio, and Emissions Funding (EFi), a measure of how much of the climate risk a bank funds through its lending relative to other banks and thus a measure of climate risk importance for each bank. Results from the emissions index show that the banks, with the exception of an outlier, have fairly similar exposure to climate risk through their loan portfolio, given the GHG emissions represented by their sectoral lending. On the funding index, banks have differentiated funding of climate risk through their lending that is fairly proportional to their market shares of gross loans. Thus, larger (smaller) banks have higher (lower) funding of climate-related risk. These two complementary indices provide a first set of quantitative climate-related financial disclosures that are comparable across Kenyan banks. Secondly, the results of this analysis provide decision-useful information for the Central Bank of Kenya (CBK) and other financial regulators to formulate macroeconomic and financial policies that would seek to promote low-carbon transition via the banking industry as a key financial sub-sector. Lastly, the analysis provides a template for industry-wide assessment of climate-related risk for banks in other emerging economies and the approach used for mapping national GHG emissions to bank lending sectors is also a key contribution to the literature on quantifying climate risks for the financial sector. The winning thesis of the 2020 Rudi Dornbusch Prize in International Economics. We extend our heartfelt thanks to the Vahabzadeh Foundation for financially supporting the publication of best works by young researchers of the Graduate Institute, giving a priority to those who have been awarded academic prizes for their master’s dissertations.

Author : Mr. Dimitri G Demekas,Pierpaolo Grippa
Publisher : International Monetary Fund
Page : 45 pages
File Size : 41,5 Mb
Release : 2021-12-17
Category : Business & Economics
ISBN : 9781616356521

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Financial Regulation, Climate Change, and the Transition to a Low-Carbon Economy: A Survey of the Issues by Mr. Dimitri G Demekas,Pierpaolo Grippa Pdf

There are demands on central banks and financial regulators to take on new responsibilities for supporting the transition to a low-carbon economy. Regulators can indeed facilitate the reorientation of financial flows necessary for the transition. But their powers should not be overestimated. Their diagnostic and policy toolkits are still in their infancy. They cannot (and should not) expand their mandate unilaterally. Taking on these new responsibilities can also have potential pitfalls and unintended consequences. Ultimately, financial regulators cannot deliver a low-carbon economy by themselves and should not risk being caught again in the role of ‘the only game in town.’

Author : Janis Sarra
Publisher : Oxford University Press
Page : 337 pages
File Size : 48,8 Mb
Release : 2020-11-26
Category : Law
ISBN : 9780192593429

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From Ideas to Action by Janis Sarra Pdf

This book offers a guide, for companies, pension funds, asset managers, and other institutional investors, on how to commence the legal, governance, and financial strategies needed for effective climate mitigation and adaptation, and to help distribute the economic benefits of these actions to their stakeholders. It takes the reader from ideas to action, from first steps to a more meaningful contribution to the move towards a net zero carbon world. It can serve as a helpful guide to everyone implicated in a corporation's activities - employees, pensioners, consumers, banks and other lenders, policymakers, and community members. It offers insights into what we should be expecting, and asking, of these fiduciaries who have taken responsibility for effectively managing our savings, our retirement funds, our investments, and our tax dollars.

Author : Signe Krogstrup,William Oman
Publisher : International Monetary Fund
Page : 58 pages
File Size : 51,9 Mb
Release : 2019-09-04
Category : Business & Economics
ISBN : 9781513511955

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Macroeconomic and Financial Policies for Climate Change Mitigation: A Review of the Literature by Signe Krogstrup,William Oman Pdf

Climate change is one of the greatest challenges of this century. Mitigation requires a large-scale transition to a low-carbon economy. This paper provides an overview of the rapidly growing literature on the role of macroeconomic and financial policy tools in enabling this transition. The literature provides a menu of policy tools for mitigation. A key conclusion is that fiscal tools are first in line and central, but can and may need to be complemented by financial and monetary policy instruments. Some tools and policies raise unanswered questions about policy tool assignment and mandates, which we describe. The literature is scarce, however, on the most effective policy mix and the role of mitigation tools and goals in the overall policy framework.

Author : Marco Migliorelli,Philippe Dessertine
Publisher : Springer Nature
Page : 143 pages
File Size : 52,6 Mb
Release : 2020-09-17
Category : Business & Economics
ISBN : 9783030545307

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Sustainability and Financial Risks by Marco Migliorelli,Philippe Dessertine Pdf

Despite growing discussions on the relationship between sustainability and finance, so far little attention has been given to the relation linking sustainability-related risks and financial risks. Climate change, environmental degradation and social inequality, among others factors, may indeed have considerable adverse impacts on financial actors and markets, and even have the potential to harm financial stability. Shedding light on the importance of the nexus between sustainability and financial risks, this book addresses the need for new industry and policy approaches. With insights from a skilled set of scholars in the finance field, this edited collection explores the effects of climate risks on the banking and insurance industries, the problem of stranded assets, the possible corporate risk management frameworks that could be used to control sustainability-related risks, the role of non-financial disclosure in fostering market discipline, and the policy actions needed to integrate sustainability considerations into prudential supervision. Tackling an interdisciplinary topic, this book will appeal to academics and practitioners within the finance, business and sustainability fields.

Author : Razali Haron,Maizaitulaidawati Md Husin,Michael Murg
Publisher : BoD – Books on Demand
Page : 278 pages
File Size : 54,6 Mb
Release : 2020-12-23
Category : Business & Economics
ISBN : 9781789846829

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Banking and Finance by Razali Haron,Maizaitulaidawati Md Husin,Michael Murg Pdf

The banking and finance industry plays a significant role in the economy of a nation. As such, continuous research and up-to-date feeds are necessary for it to stay competitive and resilient. Due to its revolving and dynamic nature as well as its significance and interlinkages with other industries, a well-functioning banking and finance system is vital in safeguarding the interest of all stakeholders. Banking and Finance covers a wide range of essential topics highlighting major issues related to banking and finance. The book is rich with empirical evidence, scientific researches, best practices, and recommendations, making it a compact yet handy reference for readers, especially those who are in the field of banking and finance.

Author : National Academies of Sciences, Engineering, and Medicine,Division of Behavioral and Social Sciences and Education,Division on Earth and Life Studies,Board on Environmental Change and Society,Board on Atmospheric Sciences and Climate,Committee to Review the Draft Fourth National Climate Assessment
Publisher : National Academies Press
Page : 207 pages
File Size : 52,5 Mb
Release : 2018-06-18
Category : Science
ISBN : 9780309471695

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Review of the Draft Fourth National Climate Assessment by National Academies of Sciences, Engineering, and Medicine,Division of Behavioral and Social Sciences and Education,Division on Earth and Life Studies,Board on Environmental Change and Society,Board on Atmospheric Sciences and Climate,Committee to Review the Draft Fourth National Climate Assessment Pdf

Climate change poses many challenges that affect society and the natural world. With these challenges, however, come opportunities to respond. By taking steps to adapt to and mitigate climate change, the risks to society and the impacts of continued climate change can be lessened. The National Climate Assessment, coordinated by the U.S. Global Change Research Program, is a mandated report intended to inform response decisions. Required to be developed every four years, these reports provide the most comprehensive and up-to-date evaluation of climate change impacts available for the United States, making them a unique and important climate change document. The draft Fourth National Climate Assessment (NCA4) report reviewed here addresses a wide range of topics of high importance to the United States and society more broadly, extending from human health and community well-being, to the built environment, to businesses and economies, to ecosystems and natural resources. This report evaluates the draft NCA4 to determine if it meets the requirements of the federal mandate, whether it provides accurate information grounded in the scientific literature, and whether it effectively communicates climate science, impacts, and responses for general audiences including the public, decision makers, and other stakeholders.

Author : Paul G. Fisher
Publisher : Cambridge University Press
Page : 363 pages
File Size : 54,5 Mb
Release : 2020-11-12
Category : Business & Economics
ISBN : 9781108842297

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Making the Financial System Sustainable by Paul G. Fisher Pdf

A volume of essays by experts and thought leaders of the European Commission's High Level Expert Group on Sustainable Finance.

Author : Walter Leal Filho,Daniela Jacob
Publisher : Springer Nature
Page : 519 pages
File Size : 49,6 Mb
Release : 2020-01-17
Category : Science
ISBN : 9783030368753

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Handbook of Climate Services by Walter Leal Filho,Daniela Jacob Pdf

This book explores climate services, including projections, descriptive information, analyses, assessments, and an overview of current trends. Due to the pressures now being put on the world’s climate, it is vital to gather and share reliable climate observation and projection data, which may be tailored for use by different groups. In other words, it is essential to offer climate services. But despite the growth in the use of these services, there are very few specialist publications on this topic. This book addresses that need. Apart from presenting studies and the results of research projects, the book also offers an overview of the wide range of means available for providing and using climate services. In addition, it features case studies that provide illustrative and inspiring examples of how climate services can be optimally deployed.

Author : Reinhard Mechler,Laurens M. Bouwer,Thomas Schinko,Swenja Surminski,JoAnne Linnerooth-Bayer
Publisher : Springer
Page : 557 pages
File Size : 52,5 Mb
Release : 2018-11-28
Category : Science
ISBN : 9783319720265

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Loss and Damage from Climate Change by Reinhard Mechler,Laurens M. Bouwer,Thomas Schinko,Swenja Surminski,JoAnne Linnerooth-Bayer Pdf

This book provides an authoritative insight on the Loss and Damage discourse by highlighting state-of-the-art research and policy linked to this discourse and articulating its multiple concepts, principles and methods. Written by leading researchers and practitioners, it identifies practical and evidence-based policy options to inform the discourse and climate negotiations. With climate-related risks on the rise and impacts being felt around the globe has come the recognition that climate mitigation and adaptation may not be enough to manage the effects from anthropogenic climate change. This recognition led to the creation of the Warsaw International Mechanism on Loss and Damage in 2013, a climate policy mechanism dedicated to dealing with climate-related effects in highly vulnerable countries that face severe constraints and limits to adaptation. Endorsed in 2015 by the Paris Agreement and effectively considered a third pillar of international climate policy, debate and research on Loss and Damage continues to gain enormous traction. Yet, concepts, methods and tools as well as directions for policy and implementation have remained contested and vague. Suitable for researchers, policy-advisors, practitioners and the interested public, the book furthermore: • discusses the political, legal, economic and institutional dimensions of the issue• highlights normative questions central to the discourse • provides a focus on climate risks and climate risk management. • presents salient case studies from around the world.