Overview
Climate risk assessment evaluates how climate change impacts businesses and investments through physical risks (extreme weather, sea-level rise) and transition risks (policy changes, technology shifts, market changes). The Task Force on Climate-related Financial Disclosures (TCFD) framework has become the global standard. Financial regulators now require climate stress testing for banks and insurers. Climate risk analytics is a rapidly growing field, with specialized firms providing risk scoring, scenario analysis, and portfolio alignment tools.
Tags
climate riskTCFDfinancial riskstress testing
Economic Impact
High Impact
Protecting $30T+ in assets from climate-related financial risks through better risk management.
Emerged
2017
Related Topics
Policy
ESG Reporting Standards
Frameworks for disclosing environmental, social, and governance performance.
Policy
Net-Zero Emissions Targets
Commitments by nations and companies to achieve zero net greenhouse gas emissions.
Finance
Impact Investing
Investments made to generate measurable social and environmental impact alongside returns.