Overview

This eCourse consists of two modules on climate risk measurement. If we are to successfully identify, manage, and mitigate the impacts of climate change, we must first be able to measure them. This module provides an introduction to the field of climate-related risk analysis and assessment, focusing primarily on the high-level process for undertaking such assessments.

Module 2 provides technical insights on the main climate-related risks assessment tools. Climate-related risk assessments have different levels of sophistication and often build upon one another through successive innovation waves. Like any tools, there are pros and cons to their use and it is essential that – to use them appropriately – financial institutions understand how they are calculated and constructed.

Objective

On completion of this eCourse, you will be able to:
- Recognise the main building blocks of climate-related risk analysis
- Identify the main data sources for performing climate-related risk assessments
- List the main trends in the area of climate-related risk assessment
- Recognise the high-level process for implementing the main approaches to climate-related risk assessment – portfolio carbon footprinting, green-brown exposure, scenario analysis, and temperature alignment analysis
- Identify the main methodological questions associated with each approach and their implications when implementing them

Content

Module 1 Climate Risk Measurement – An Introduction
Topic 1: Process for Assessing Climate-Related Risk
Topic 2: Data Availability & Sources
Topic 3: Trends in Climate-Related Risk Assessment

Module 2 Climate Risk Measurement – Approaches
Topic 1: Portfolio Carbon Footprinting
Topic 2: Green-Brown Exposure Assessments
Topic 3: Scenario Analysis
Topic 4: Alignment Analysis