imported>Doug Williamson |
imported>Doug Williamson |
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| ''Climate change - financial risks''.
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| The Bank of England defines climate transition risk as financial risks that could arise from adjusting to a lower-carbon economy.
| | Loosely, the G5 is a group of 5 major industrialised countries comprising France, Germany, Japan, the United Kingdom and the United States. |
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| Climate transition risks are distinct from the direct physical risks of climate change, such as more frequent and severe extreme weather events.
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| :<span style="color:#4B0082">'''''Climate transition risks and opportunities'''''</span>
| | More strictly, a meeting of the heads of government or the heads of central banks from those countries. |
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| :* Policy and legal changes including changes relating to energy generation, renewable energy targets, sustainable land use and water efficiency.
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| :* Technological advancements in renewable energy, battery storage and electrification of transport, aviation and agriculture.
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| :* Change in demand for products and commodities, including fossil fuels and lithium, leading to market risk.
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| :* Reputational risk arising from shareholder, consumer or investor concerns, reflecting the transition in views regarding fossil fuels.
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| :''Actuaries Institute of Australia Climate Change Working Group''
| | ''Also known as the Group of Five or 'G-5'.'' |
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| :<span style="color:#4B0082">'''''What are the climate transition risks?'''''</span>
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| :"Transition risks can occur when moving towards a less polluting, greener economy. Such transitions could mean that some sectors of the economy face big shifts in asset values or higher costs of doing business. It’s not that policies stemming from deals like the Paris Climate Agreement are bad for our economy – in fact, the risk of delaying action altogether would be far worse. Rather, it’s about the speed of transition to a greener economy – and how this affects certain sectors and financial stability.
| | The G5 is also a group of 5 developing countries comprising Brazil, China, India, Mexico and South Africa. |
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| :One example is energy companies. If government policies were to change in line with the Paris Agreement, then two thirds of the world’s known fossil fuel reserves could not be burned. This could lead to changes in the value of investments held by banks and insurance companies in sectors like coal, oil and gas.
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| :The move towards a greener economy could also impact companies that produce cars, ships and planes, or use a lot of energy to make raw materials like steel and cement."
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| :''Bank of England''
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| == See also == | | == See also == |
| * [[Bank of England]] | | * [[BRICS]] |
| * [[Climate change]] | | * [[Central bank]] |
| * [[Climate Disclosure Standards Board]] | | * [[5G]] |
| * [[Climate liability risk]] | | * [[G7]] |
| * [[Climate physical risk]] | | * [[G8]] |
| * [[Climate risk]] | | * [[G10]] |
| * [[COP26 Private Finance Hub]]
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| * [[Financial Conduct Authority]]
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| * [[Financial Stability Board]]
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| * [[Fossil fuel]]
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| * [[G20]] | | * [[G20]] |
| * [[Greenflation]] | | * [[G77]] |
| * [[Greenhouse gas]] | | * [[Plaza Accord]] |
| * [[Listing Rules]]
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| * [[Market risk]]
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| * [[Paris Agreement]]
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| * [[Premium Listing]]
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| * [[Reputational risk]]
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| * [[Stakeholder]]
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| * [[Standard Setting Body]]
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| * [[Stranded assets]]
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| * [[Task Force on Climate-related Financial Disclosures]]
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| * [[TCFD Recommendations]]
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| * [[Transition finance]]
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| * [[Transition risk]]
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| * [[World Economic Forum]]
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| == External link ==
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| * [https://www.bankofengland.co.uk/knowledgebank/climate-change-what-are-the-risks-to-financial-stability Climate change - What are the risks to financial stability? Bank of England]
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| [[Category:The_business_context]] | | [[Category:The_business_context]] |
| [[Category:Corporate_finance]]
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| [[Category:Compliance_and_audit]]
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| [[Category:Ethics]]
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| [[Category:Identify_and_assess_risks]]
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| [[Category:Manage_risks]]
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| [[Category:Risk_frameworks]]
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| [[Category:Risk_reporting]]
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| [[Category:Financial_products_and_markets]]
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1.
Loosely, the G5 is a group of 5 major industrialised countries comprising France, Germany, Japan, the United Kingdom and the United States.
2.
More strictly, a meeting of the heads of government or the heads of central banks from those countries.
Also known as the Group of Five or 'G-5'.
3.
The G5 is also a group of 5 developing countries comprising Brazil, China, India, Mexico and South Africa.
See also
