Analyzing Climate Risk for Financial Markets

In this episode, we explore climate related risk and how it is being managed in today’s financial world. We’re joined by John Colas, Partner and Vice Chairman of Oliver Wyman Financial Services Americas.

John was part of the team assisting the United Nations Environment Programme – Finance Initiative (UNEP FI) to develop a framework to assess and disclose climate-related risk factors.  This project focused on piloting the recommendations of the Financial Stability Board’s Task Force on Climate Related Financial Disclosure (TCFD) and its recommendations around scenario analysis of climate risk.

John and Michael discuss this work as well as John’s background in risk and strategy and how it translates to the topic of sustainability and climate change.

In this episode:

  • How we define climate risk
  • The origins of the UNEP FI pilot.
  • How scenario analysis informs climate risk analysis
  • Recommendations for companies on how to deal with climate risk.
  • How to reconcile long term horizons vs immediate business goals.
  • What climate risk means for the investment community.

This episode's guest

John Colas
John Colas
Partner and Vice Chairman of Oliver Wyman Financial Services Americas

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Transcript