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Climate Risk Taxonomies 101: A User Guide
Manage episode 372365301 series 3036155
Hear from Bob Buhr of the Imperial College Business School, as we explore ways of organizing the risks from climate change.
A risk taxonomy is a key underpinning of enterprise risk management. Used by firms to create a common risk language, it underpins a range of activities, such as risk identification, risk appetite setting and risk horizon scanning. But when it comes to the risks arising from climate change, there has been a bit of a vacuum. Some firms have chosen to use ‘green’ taxonomies. But these were set up for a different purpose – that is to classify the sectoral investment opportunities from the transition to a net zero or ‘green’ economy.
That’s why in today’s episode, we’ll be looking at how firms can overcome this gap, by examining a taxonomy that has been set up specifically to classify potential firm-specific climate risks. We’ll explore:
- The challenges facing firms from a lack of suitable risk taxonomies;
- What the key categories within a climate risk taxonomy ought to be; and
- Why and how biodiversity loss and natural capital risks should be incorporated.
To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: https://www.garp.org/scr
For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: https://www.garp.org/sustainability-climate
If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: climateriskpodcast@garp.com Links from today’s discussion:
- Bob’s latest book, “Climate Risks: An Investor's Field Guide to Identification and Assessment” - https://www.wiley.com/en-gb/Climate+Risks%3A+An+Investor%27s+Field+Guide+to+Identification+and+Assessment-p-9781394187355
- Eila Kreivi on the GARP Climate Risk Podcast – https://www.garp.org/podcast/eu-taxonomy-sustainable-finances-cr-220616
- UNEP FI’s annual climate adaptation gap reports – https://www.unep.org/resources/adaptation-gap-report-2022
- Jo Handelsman on the GARP Climate Risk Podcast – https://www.garp.org/podcast/soil-crisis-opportunity-cr-041323
- McKinsey’s report on natural capital - https://www.mckinsey.com/capabilities/sustainability/our-insights/nature-in-the-balance-what-companies-can-do-to-restore-natural-capital
Bob Buhr, Honorary Research Fellow, Centre for Climate Finance and Investment, Imperial College Business School
Over a 30-year career, Bob has worked at major rating agencies, asset managers, hedge funds and banks, and was often cited as a top-ranked bond analyst in various investor polls. He has published ESG and climate-related reports and written on environmental risks for years and has engaged with a variety of NGOs on climate and natural capital-related issues. He is the author of Climate Risks: An Investor's Field Guide to Identification and Assessment. Bob holds a bachelor’s degree from Ithaca College, and a Ph.D. from Brown University.
70 episodes
Manage episode 372365301 series 3036155
Hear from Bob Buhr of the Imperial College Business School, as we explore ways of organizing the risks from climate change.
A risk taxonomy is a key underpinning of enterprise risk management. Used by firms to create a common risk language, it underpins a range of activities, such as risk identification, risk appetite setting and risk horizon scanning. But when it comes to the risks arising from climate change, there has been a bit of a vacuum. Some firms have chosen to use ‘green’ taxonomies. But these were set up for a different purpose – that is to classify the sectoral investment opportunities from the transition to a net zero or ‘green’ economy.
That’s why in today’s episode, we’ll be looking at how firms can overcome this gap, by examining a taxonomy that has been set up specifically to classify potential firm-specific climate risks. We’ll explore:
- The challenges facing firms from a lack of suitable risk taxonomies;
- What the key categories within a climate risk taxonomy ought to be; and
- Why and how biodiversity loss and natural capital risks should be incorporated.
To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: https://www.garp.org/scr
For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: https://www.garp.org/sustainability-climate
If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: climateriskpodcast@garp.com Links from today’s discussion:
- Bob’s latest book, “Climate Risks: An Investor's Field Guide to Identification and Assessment” - https://www.wiley.com/en-gb/Climate+Risks%3A+An+Investor%27s+Field+Guide+to+Identification+and+Assessment-p-9781394187355
- Eila Kreivi on the GARP Climate Risk Podcast – https://www.garp.org/podcast/eu-taxonomy-sustainable-finances-cr-220616
- UNEP FI’s annual climate adaptation gap reports – https://www.unep.org/resources/adaptation-gap-report-2022
- Jo Handelsman on the GARP Climate Risk Podcast – https://www.garp.org/podcast/soil-crisis-opportunity-cr-041323
- McKinsey’s report on natural capital - https://www.mckinsey.com/capabilities/sustainability/our-insights/nature-in-the-balance-what-companies-can-do-to-restore-natural-capital
Bob Buhr, Honorary Research Fellow, Centre for Climate Finance and Investment, Imperial College Business School
Over a 30-year career, Bob has worked at major rating agencies, asset managers, hedge funds and banks, and was often cited as a top-ranked bond analyst in various investor polls. He has published ESG and climate-related reports and written on environmental risks for years and has engaged with a variety of NGOs on climate and natural capital-related issues. He is the author of Climate Risks: An Investor's Field Guide to Identification and Assessment. Bob holds a bachelor’s degree from Ithaca College, and a Ph.D. from Brown University.
70 episodes
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