The move toward a low carbon world could see sectors of the economy face big swings in asset values — for instance, the market value of businesses exposed to thermal coal has fallen in recent years — or higher costs of doing business such as labeling consumer products as low carbon or new green building codes. Carbon intensive industries could lose subsidies and others could be subject to carbon pricing or other forms of green taxation, either explicitly or implicitly.
Transition risks can also derive from regulatory and technological changes designed to reduce emissions。
Other transition risks come from demand-side changes resulting from a shift in consumer trends as they become more sensitive to environmental issues or change behavior due to economic incentives
Physical and transitional climate change risks are not mutually exclusive. The California wildfires in 2017 and 2018 showed how climate change can incur very specific near-term physical costs — as well as transitional ones. The wildfires led to the California-based utility company PG&E filing for bankruptcy after facing liability for damages. This was one of the first bankruptcies tied to climate change, where extensive damage was amplified by extremely hot and dry weather conditions.
LIABILITY RISK
To mitigate this risk, companies should meet demands for reliable climate-related risks disclosures in line with the guidelines set by the Sustainability Accounting Standards Board and the Task Force on Climate-related Financial Disclosures
We know that storms will hit us with more frequency, and more intensity. We know warming temperatures might disrupt food and water supplies, leading to unrest around the world. Our financial system must be prepared for the market and credit risks of these climate-related events. But it must also be prepared for the best-possible case scenario: that we begin a rapid transition to a net-zero carbon economy, which also creates potential challenges for financial institutions and markets
发表于 2021-3-27 10:48
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