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       <center><p style="color: #ffffff; font-size: 25px"> Welcome to UW Climate Risk Lab Wiki, </p>
       <center><p style="color: #ffffff; font-size: 25px"> Welcome to the Climate Risk Wiki! </p>
         <p style="color: #e1dbea; font-size: 16px">the place for best climate risk data, analysis, and tools available for all.</p>
         <p style="color: #e1dbea; font-size: 16px">"On a mission to make the best climate risk data, analysis, and tools available for all"</p>
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           font-weight: bold; font-size: 21px">UW Climate Risk Lab</h2>
           font-weight: bold; font-size: 21px">UW Climate Risk Lab</h2>
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         <p>The UW Climate Risk Lab (CRL) is a multidisciplinary research and innovation center based at the [https://foster.uw.edu/ University of Washington Foster School of Business] in the Department of Finance & Business Economics. Established in 2022, it advances data and technology solutions to issues in climate-related financial risk for corporate and government decision-makers. [https://foster.uw.edu/faculty-research/directory/phillip-bruner/ Phillip Bruner], co-founder of the CRL, currently serves as its Executive Director. <p>The CRL brings together academics and professionals in climate finance, risk management, business
         <p>The UW Climate Risk Lab (CRL) is a multidisciplinary research and innovation center based at the [https://foster.uw.edu/ University of Washington Foster School of Business] in the Department of Finance & Business Economics. Established in 2022, it advances data and technology solutions to issues in climate-related financial risk for corporate and government decision-makers. [https://foster.uw.edu/faculty-research/directory/phillip-bruner/ Phillip Bruner], co-founder of the CRL, currently serves as its Executive Director. <p>
 
<p>The CRL brings together academics and professionals in climate finance, risk management, business
analytics, data engineering, computer science, atmospheric sciences, supply chains management,
analytics, data engineering, computer science, atmospheric sciences, supply chains management,
information systems and AI. It collaborates with several initiatives within the [https://www.washington.edu/ University of Washington (UW)], which include the [https://foster.uw.edu/centers/buerk-ctr-entrepreneurship/ Buerk Center for Entrepreneurship], [https://www.cei.washington.edu/ Clean Energy Institute], [https://foster.uw.edu/centers/creative-destruction-lab/ Creative Destruction Lab], [https://escience.washington.edu/ eSciences Institute] and [https://uil.be.uw.edu/ Urban Infrastructure Lab]. Its external partners include: the [https://nicholasinstitute.duke.edu/issues/energy-data-analytics Duke Energy Data Analytics Lab], the [https://pnwmac.org/ Pacific Northwest Mission Accelerator Center], and [https://maritimeblue.org/ Washington Maritime Blue].</p>
information systems and AI. It collaborates with several initiatives within the [https://www.washington.edu/ University of Washington (UW)], which include the [https://foster.uw.edu/centers/buerk-ctr-entrepreneurship/ Buerk Center for Entrepreneurship], [https://www.cei.washington.edu/ Clean Energy Institute], [https://foster.uw.edu/centers/creative-destruction-lab/ Creative Destruction Lab], [https://escience.washington.edu/ eSciences Institute] and [https://uil.be.uw.edu/ Urban Infrastructure Lab]. Its external partners include: the [https://nicholasinstitute.duke.edu/issues/energy-data-analytics Duke Energy Data Analytics Lab], the [https://pnwmac.org/ Pacific Northwest Mission Accelerator Center], and [https://maritimeblue.org/ Washington Maritime Blue].</p>


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<h3>History</h3>
  <h3>History</h3>
       <p>The CRL originated in 2022 with a grant from the Office of UW President [https://en.wikipedia.org/wiki/Ana_Mari_Cauce Ana Marie Cauce] made to the Foster School of Business, Department of Finance & Business Economics. The idea was then developed by a team lead by [https://foster.uw.edu/faculty-research/directory/phillip-bruner/ Phillip Bruner], UW Professor of Sustainable Finance, [https://impaxam.com/about/team/charlie-donovan/ Charlie Donovan], Senior Economic Advisor at [https://en.wikipedia.org/wiki/Impax_Asset_Management_Group Impax Asset Management], Sam Shugart, New Product & Services Market Analyst at Puget Sound Energy and Simon Park, Harvard graduate and Fellow of the [https://en.wikipedia.org/wiki/Evans_School_of_Public_Policy_and_Governance UW Evans School of Public Policy].
       <p>The CRL originated in 2022 with a grant from the Office of UW President [https://en.wikipedia.org/wiki/Ana_Mari_Cauce Ana Marie Cauce] made to the Foster School of Business, Department of Finance & Business Economics. The idea was then developed by a team led by [https://foster.uw.edu/faculty-research/directory/phillip-bruner/ Phillip Bruner], UW Professor of Sustainable Finance, [https://impaxam.com/about/team/charlie-donovan/ Charlie Donovan], Senior Economic Advisor at [https://en.wikipedia.org/wiki/Impax_Asset_Management_Group Impax Asset Management], Sam Shugart, New Product & Services Market Analyst at Puget Sound Energy and Simon Park, Harvard graduate and Fellow of the [https://en.wikipedia.org/wiki/Evans_School_of_Public_Policy_and_Governance UW Evans School of Public Policy].
   
 
      <h3>Steering Committee</h3>
=== '''Editorial Board''' ===
The Editorial Board is responsible for maintaining the accuracy, quality, and relevance of all content. They guide contributors, oversee new additions, and ensure the wiki remains an up-to-date and reliable resource for climate-related financial risk analysis, following the [[Climate Risk Lab Wiki Editorial Guidelines|editorial guidelines]].
 
:[https://foster.uw.edu/faculty-research/directory/phillip-bruner/ Dr. Phillip Bruner] Professor of Sustainable Finance and CRL Executive Director
 
:[https://www.linkedin.com/in/xiaojuanliu-uw/ Dr. Xiaojuan Liu] Climate Data Scientist at CRL
 
:[https://www.linkedin.com/in/annakruglova/ Dr. Anna Fitzgerald] Postdoctoral Researcher at National Association of Insurance Commissioners (NAIC)
 
:[https://www.ceres.org/people/jaclyn-de-medicci-bruneau Jaclyn de Medicci Bruneau] Director of Insurance at Ceres
=== '''Steering Committee''' ===
       <p>The CRL Steering Committee is currently made up of the following members:</p>
       <p>The CRL Steering Committee is currently made up of the following members:</p>


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:[https://urbdp.be.uw.edu/people/jan-whittington/ Jan Whittington], Associate Professor of the Department of Urban Design and Planning and Founding Director of the [https://uil.be.uw.edu/ Urban Infrastructure Lab]
:[https://urbdp.be.uw.edu/people/jan-whittington/ Jan Whittington], Associate Professor of the Department of Urban Design and Planning and Founding Director of the [https://uil.be.uw.edu/ Urban Infrastructure Lab]
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<p>This website’s content is licensed under a [https://creativecommons.org/licenses/by/4.0/ Creative Commons Attribution 4.0 International License].</p>
This website’s content is licensed under a [https://creativecommons.org/licenses/by/4.0/ Creative Commons Attribution 4.0 International License].</p>


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* No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
* No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.


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           font-weight: bold; font-size: 21px">Climate-related Financial Risk
           font-weight: bold; font-size: 21px">Climate-related Financial Risk</h2>
=== What is climate risk? ===
<div>
Climate risk is the potential for negative consequences for human or ecological systems from the [[wikipedia:Impacts_of_Climate_Change|impacts of climate change]]. <ref>IPCC, 2022: Annex II: Glossary [Möller, V., R. van Diemen, J.B.R. Matthews, C. Méndez, S. Semenov, J.S. Fuglestvedt, A. Reisinger (eds.)]. In: Climate Change 2022: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change [H.-O.Pörtner, D.C. Roberts, M. Tignor, E.S. Poloczanska, K. Mintenbeck, A. Alegría, M. Craig, S. Langsdorf, S. Löschke, V. Möller, A. Okem, B. Rama (eds.)]. Cambridge University Press, Cambridge, UK and New York, NY, USA, pp. 2897–2930, doi:10.1017/9781009325844.029.</ref> It refers to risk assessments based on formal analysis of the consequences, likelihoods and responses to these impacts and how societal constraints shape [[wikipedia:Climate_change_adaptation|adaptation]] options. <ref>Adger WN, Brown I, Surminski S (June 2018). "Advances in risk assessment for climate change adaptation policy". Philosophical Transactions. Series A, Mathematical, Physical, and Engineering Sciences. 376 (2121): 20180106. Bibcode:2018RSPTA.37680106A. doi:10.1098/rsta.2018.0106. PMC 5938640. PMID 29712800.</ref> <ref>Eckstein D, Hutfils M, Winges M (December 2018). Global Climate Risk Index 2019; Who Suffers Most From Extreme Weather Events? Weather-related Loss Events in 2017 and 1998 to 2017 (PDF) (14th ed.). Bonn: Germanwatch e.V. p. 35. ISBN 978-3-943704-70-9. Retrieved 7 December 2019.</ref> The science also recognizes different values and preferences around risk, and the importance of risk perception. <ref>Ara Begum, R., R. Lempert, E. Ali, T.A. Benjaminsen, T. Bernauer, W. Cramer, X. Cui, K. Mach, G. Nagy, N.C. Stenseth, R. Sukumar, and P. Wester, 2022: Chapter 1: Point of Departure and Key Concepts. In: Climate Change 2022: Impacts, Adaptation and Vulnerability. Contribution of Working Group II to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change [H.-O. Pörtner, D.C. Roberts, M. Tignor, E.S. Poloczanska, K. Mintenbeck, A. Alegría, M. Craig, S. Langsdorf, S. Löschke, V. Möller, A. Okem, B. Rama (eds.)]. Cambridge University Press, Cambridge, UK and New York, NY, USA, pp. 121–196, doi:10.1017/9781009325844.003.</ref>
<p>[[wikipedia:Climate_change|Climate change]] is already impacting the Earth dramatically<ref>IPCC, 2023: ''Climate Change 2023: Synthesis Report.'' Contribution of Working Groups I, II and III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change [Core Writing Team, H. Lee and J. Romero (eds.)]. IPCC, Geneva, Switzerland, pp. 35-115, doi: 10.59327/IPCC/AR6-9789291691647.</ref>, and the continued rise in greenhouse gas emissions will cause further warming of the planet, leading to significant socio-economic consequences. These impacts pose substantial risks to businesses, particularly those in vulnerable industries, affecting their credit profiles, share prices, and overall financial stability.</p>
 
While the general understanding that climate change poses risks is widely accepted, it is not enough for lenders, investors, or regulators to act effectively without a clearer definition of the specific financial risks. These risks need to be quantified in terms of their scope, timing, and probability of occurrence. Identifying and understanding climate-related financial risks early on is critical, as they can lead to reduced asset utilization or valuation, decreased income, and lower profit margins. These financial impacts can translate into increased credit risk, influencing lenders' decisions and reshaping the financial profiles of affected industries.<ref>Imperial College Business School Center for Climate Finance & Investment (February 2022). “What is Climate Risk? A Field Guide for Investors, Lenders, and Regulators.” Available at: https://imperialcollegelondon.app.box.com/s/te5eahz3x47q93vufwwu3ntmf5rxecxs</ref>
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The Taskforce on Climate-Related Financial Disclosures (TCFD) <ref>Taskforce on Climate-Related Financial Disclosures (June 2017). “Recommendations of the Taskforce on Climate-related Financial Disclosures: Final Report.” Available at: https://assets.bbhub.io/company/sites/60/2021/10/FINAL-2017-TCFD-Report.pdf</ref> divided climate-related financial risks into two major categories:


Common approaches to [[wikipedia:Risk_assessment|risk assessment]] and [[wikipedia:Risk_management|risk management]] strategies based on [[wikipedia:Natural_Hazards|natural hazards]] have been applied to climate change impacts although there are distinct differences. Based on a [[wikipedia:Climate_system|climate system]] that is no longer staying within a stationary range of extremes, <ref>IPCC (2018). Global Warming of 1.5°C. An IPCC Special Report. Summary for Policymakers (PDF). Intergovernmental Panel on Climate Change. p. 5.</ref> climate change impacts are anticipated to increase for the coming decades. Ongoing changes in the climate system complicate assessing risks. Applying current knowledge to understand climate risk is further complicated due to substantial differences in regional climate projections. There is also an expanding number of climate model results, and the need to select a useful set of future [[wikipedia:Climate_change_scenario|climate change scenarios]] in the assessments.<ref>Whetton P, Hennessy K, Clarke J, McInnes K, Kent D (2012-12-01). "Use of Representative Climate Futures in impact and adaptation assessment". Climatic Change. 115 (3): 433–442. Bibcode:2012ClCh..115..433W. doi:10.1007/s10584-012-0471-z. S2CID 153833090</ref>
* '''Physical Risks''': risks related to the physical impacts of climate change. [<nowiki/>[[Physical Risk|Read more]]]
 
* '''Transition Risks''': risks related to the transition to a lower-carbon economy. [<nowiki/>[[Transition risk|Read more]]]
The [[wikipedia:Intergovernmental_Panel_on_Climate_Change|Intergovernmental Panel on Climate Change]] (IPCC) assessment framework is based on the understanding that climate risk emerges from the interaction of three risk factors: [[wikipedia:Hazard|hazards]], [[wikipedia:Climate_change_vulnerability|vulnerability]] and exposure. The IPCC summarizes published research on climate risk evaluations. <ref>About — IPCC". Retrieved 2023-11-16.</ref> International and research communities have been working on various approaches to [[wikipedia:Climate_risk_management|climate risk management]] including [[wikipedia:Climate_risk_insurance|climate risk insurance]].
 
=== What is climate-related financial risk? ===
Climate change is a medium- to long-term trend that is expected to have significant financial impacts on companies in affected industries, including on their credit profiles and/or share prices. However, this knowledge is not particularly helpful for lenders, investors, or regulators unless these climate-related financial risks can be further defined in terms of their scope and, more importantly, their timing and likelihood. It is necessary to identify climate risks to industries before they cause reductions in asset utilization or valuation, reduced income and margins, or other financial impacts—changes that translate into credit risk and influence lenders’ decisions about financial profiles. <ref>Imperial College Business School Center for Climate Finance & Investment (February 2022). “What is Climate Risk? A Field Guide for Investors, Lenders, and Regulators.” Available at: https://imperialcollegelondon.app.box.com/s/te5eahz3x47q93vufwwu3ntmf5rxecxs</ref>
 
=== Climate-related financial risk categories ===
There are two categories of climate-related financial risk, according to the Taskforce on Climate-Related Financial Disclosures (TCFD): <ref>Taskforce on Climate-Related Financial Disclosures (June 2017). “Recommendations of the Taskforce on Climate-related Financial Disclosures: Final Report.” Available at: https://assets.bbhub.io/company/sites/60/2021/10/FINAL-2017-TCFD-Report.pdf</ref>
 
* Transition Risks: Risks related to the transition to a lower-carbon economy. ([[Transition risk|Read more ...]])
* Physical Risks: Risks related to the physical impacts of climate change. (Read more ...)


[[File:Climate_related_risks.png|thumb|center|700px|Climate-Related Risks, Opportunities, and Financial Impact]]
[[File:Climate_related_risks.png|thumb|center|700px|Climate-Related Risks, Opportunities, and Financial Impact]]


''Source: [https://assets.bbhub.io/company/sites/60/2021/10/FINAL-2017-TCFD-Report.pdf Recommendations of the Task Force on Climate-related Financial Disclosures]''
''Source: [https://assets.bbhub.io/company/sites/60/2021/10/FINAL-2017-TCFD-Report.pdf Recommendations of the Task Force on Climate-related Financial Disclosures]''
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           font-weight: bold; font-size: 21px">Data</h2>
           font-weight: bold; font-size: 21px">Call for Collaboration</h2>
The goal of this platform is to '''continuously gather, update, and share high-quality data, analysis and tools''' to support climate-related financial risk education and decision-making.
 
We invite you to join us in this effort by contributing your expertise, knowledge, datasets, and tools. We welcome participation from experts, organizations, and communities engaged in climate-related financial risk analysis.
 
By sharing your resources, you will:
* Help enhance our collective understanding of climate-related financial risks.
* Enable broader access to cutting-edge climate-related financial risk models and forecasts.
* Join a network of professionals who support our mission to “make the best climate-related financial risk data, analysis and tools available for all.”
 
If you are interested in contributing to our work please choose one of the following options:
* '''Submit''' your data directly using [https://forms.gle/Unc1S5oaAQPb3Wkm9 this form];
* Request to '''join''' the [https://www.climateriskwiki.uw.edu/index.php?title=Special:RequestAccount Climate Risk Lab Wiki] as an approved contributor;
* '''Contact''' us at [mailto:xjliu@uw.edu xjliu@uw.edu]
 
Together, we can work toward a future where climate risk is accounted for in all organizational decision-making worldwide!
 
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== References ==
== References ==
<references />
<references />

Latest revision as of 03:52, 8 November 2024


Welcome to the Climate Risk Wiki!

"On a mission to make the best climate risk data, analysis, and tools available for all"


UW Climate Risk Lab

The UW Climate Risk Lab (CRL) is a multidisciplinary research and innovation center based at the University of Washington Foster School of Business in the Department of Finance & Business Economics. Established in 2022, it advances data and technology solutions to issues in climate-related financial risk for corporate and government decision-makers. Phillip Bruner, co-founder of the CRL, currently serves as its Executive Director.

The CRL brings together academics and professionals in climate finance, risk management, business analytics, data engineering, computer science, atmospheric sciences, supply chains management, information systems and AI. It collaborates with several initiatives within the University of Washington (UW), which include the Buerk Center for Entrepreneurship, Clean Energy Institute, Creative Destruction Lab, eSciences Institute and Urban Infrastructure Lab. Its external partners include: the Duke Energy Data Analytics Lab, the Pacific Northwest Mission Accelerator Center, and Washington Maritime Blue.

History

The CRL originated in 2022 with a grant from the Office of UW President Ana Marie Cauce made to the Foster School of Business, Department of Finance & Business Economics. The idea was then developed by a team led by Phillip Bruner, UW Professor of Sustainable Finance, Charlie Donovan, Senior Economic Advisor at Impax Asset Management, Sam Shugart, New Product & Services Market Analyst at Puget Sound Energy and Simon Park, Harvard graduate and Fellow of the UW Evans School of Public Policy.

Editorial Board

The Editorial Board is responsible for maintaining the accuracy, quality, and relevance of all content. They guide contributors, oversee new additions, and ensure the wiki remains an up-to-date and reliable resource for climate-related financial risk analysis, following the editorial guidelines.

Dr. Phillip Bruner Professor of Sustainable Finance and CRL Executive Director
Dr. Xiaojuan Liu Climate Data Scientist at CRL
Dr. Anna Fitzgerald Postdoctoral Researcher at National Association of Insurance Commissioners (NAIC)
Jaclyn de Medicci Bruneau Director of Insurance at Ceres

Steering Committee

The CRL Steering Committee is currently made up of the following members:

Phillip Bruner, Professor of Sustainable Finance and CRL Executive Director
Léonard Boussioux, Assistant Professor of Information Systems and Operations Management
Charlie Donovan, Senior Economic Advisor at Impax Asset Management and CRL Leadership Council Chair
Emer Dooley, Artie Buerk Faculty Fellow and Site Lead at Creative Destruction Lab
Dale Durran, Professor of Atmospheric Sciences and Adjunct Professor of Applied Mathematics
Kristie Ebi, Professor of Global Health and Environmental and Occupational Health Sciences and Founder of the UW Center for Health and the Global Environment
Sara Jones, Director of the Masters of Supply Chain Management and Master of Science in Business Analytics
Dan Schwartz, Boeing-Sutter Professor of Chemical Engineering and Founding Director of the Clean Energy Institute
Jan Whittington, Associate Professor of the Department of Urban Design and Planning and Founding Director of the Urban Infrastructure Lab


License Information

This website’s content is licensed under a Creative Commons Attribution 4.0 International License.

You are free to:

  • Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
  • Adapt — remix, transform, and build upon the material for any purpose, even commercially.
The licensor cannot revoke these freedoms as long as you follow the license terms.

Under the following terms:

  • Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
  • No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.

Notices:

  • You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation.
  • No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.

Read the full license here.


Climate-related Financial Risk

Climate change is already impacting the Earth dramatically[1], and the continued rise in greenhouse gas emissions will cause further warming of the planet, leading to significant socio-economic consequences. These impacts pose substantial risks to businesses, particularly those in vulnerable industries, affecting their credit profiles, share prices, and overall financial stability.

While the general understanding that climate change poses risks is widely accepted, it is not enough for lenders, investors, or regulators to act effectively without a clearer definition of the specific financial risks. These risks need to be quantified in terms of their scope, timing, and probability of occurrence. Identifying and understanding climate-related financial risks early on is critical, as they can lead to reduced asset utilization or valuation, decreased income, and lower profit margins. These financial impacts can translate into increased credit risk, influencing lenders' decisions and reshaping the financial profiles of affected industries.[2]

The Taskforce on Climate-Related Financial Disclosures (TCFD) [3] divided climate-related financial risks into two major categories:

  • Physical Risks: risks related to the physical impacts of climate change. [Read more]
  • Transition Risks: risks related to the transition to a lower-carbon economy. [Read more]
Climate-Related Risks, Opportunities, and Financial Impact

Source: Recommendations of the Task Force on Climate-related Financial Disclosures


Call for Collaboration

The goal of this platform is to continuously gather, update, and share high-quality data, analysis and tools to support climate-related financial risk education and decision-making.

We invite you to join us in this effort by contributing your expertise, knowledge, datasets, and tools. We welcome participation from experts, organizations, and communities engaged in climate-related financial risk analysis.

By sharing your resources, you will:

  • Help enhance our collective understanding of climate-related financial risks.
  • Enable broader access to cutting-edge climate-related financial risk models and forecasts.
  • Join a network of professionals who support our mission to “make the best climate-related financial risk data, analysis and tools available for all.”

If you are interested in contributing to our work please choose one of the following options:

Together, we can work toward a future where climate risk is accounted for in all organizational decision-making worldwide!

References

  1. ↑ IPCC, 2023: Climate Change 2023: Synthesis Report. Contribution of Working Groups I, II and III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change [Core Writing Team, H. Lee and J. Romero (eds.)]. IPCC, Geneva, Switzerland, pp. 35-115, doi: 10.59327/IPCC/AR6-9789291691647.
  2. ↑ Imperial College Business School Center for Climate Finance & Investment (February 2022). “What is Climate Risk? A Field Guide for Investors, Lenders, and Regulators.” Available at: https://imperialcollegelondon.app.box.com/s/te5eahz3x47q93vufwwu3ntmf5rxecxs
  3. ↑ Taskforce on Climate-Related Financial Disclosures (June 2017). “Recommendations of the Taskforce on Climate-related Financial Disclosures: Final Report.” Available at: https://assets.bbhub.io/company/sites/60/2021/10/FINAL-2017-TCFD-Report.pdf
Retrieved from "http://climateriskwiki.uw.edu/index.php?title=Main_Page&oldid=1762"