Climate Risk Podcast
Hello and welcome to GARP’s Climate Risk Podcast series, where we will be investigating how climate change is impacting the world of business and finance and what this means for risk management. Through the course of this series we will be bringing you insights from those working at the cutting edge of climate change. We will be joined by regulators, business leaders and risk practitioners who will help us build up a holistic view of the risks and opportunities that climate change poses and explore how this might affect you in your day to day work.
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Modelling Economic Complexity: Insights for Risk Professionals
12/19/2024
Modelling Economic Complexity: Insights for Risk Professionals
Hear from Prof. J. Doyne Farmer, Professor of Complex Systems Science at the University of Oxford, as we explore new modelling approaches designed to better capture the complex and chaotic nature of our climate and economy. We spend a lot of time on this podcast covering the transition to a low carbon economy, which will be driven largely by policies and technological innovation. These policies tend to be based on insights from economics. And our view on the pace of innovation is often informed by expert judgement. But traditional economic models often oversimplify the world, leading to poor policy design. And we tend to underestimate the exponential rate of technological change, making us unduly pessimistic about the transition. Today’s guest has thought a great deal about both these issues. That’s why in today’s episode we’ll be diving into the world of complexity economics and agent-based modelling, which can help us better navigate the risks and opportunities associated with the transition. We’ll discuss: How agent-based models are very well suited to modelling complex, non-linear systems, such as the economy; How past innovation cycles can provide invaluable insights on what we might expect to see in the transition; and What the models tell us about the appropriate speed of the transition to a net zero world. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: Making Sense of Chaos: A Better Economics for a Better World: Santa Fe Institute’s Office of Applied Complexity: GARP Climate Risk Podcast with Simon Sharpe: GARP Climate Risk Podcast with David Stainforth: Speaker’s Bio(s) Prof. J. Doyne Farmer, Professor of Complex Systems Science, University of Oxford J. Doyne Farmer is Baillie Gifford Professor of Complex Systems Science at the Smith School of Enterprise and the Environment and Director of the Complexity Economics programme at the Institute for New Economic Thinking University of Oxford. He is also External Professor at the Santa Fe Institute and Chief Scientist at Macrocosm. His current research is in economics, including agent-based modelling, financial instability and technological progress. He was a founder of Prediction Company, a quantitative automated trading firm that was sold to UBS in 2006. His past research includes complex systems, dynamical systems theory, time series analysis and theoretical biology. His book, Making Sense of Chaos: A Better Economics for a Better World, was published in 2024. During the 1980s he was an Oppenheimer Fellow and the founder of the Complex Systems Group at Los Alamos National Laboratory. While a graduate student in the 1970s he built the first wearable digital computer, which was successfully used to predict the game of roulette.
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Predicting Our Climate Future: What We Do, Don’t and Can’t Know
11/28/2024
Predicting Our Climate Future: What We Do, Don’t and Can’t Know
Hear from Prof. David Stainforth of LSE’s Grantham Research Institute, as we explore the limitations of climate modelling and the implications for risk management. There are some things in life that we can be virtually certain about: if one throws a ball into the air, it will fall back down. Similarly, scientists have evidence beyond reasonable doubt that atmospheric concentrations of carbon dioxide have increased a lot in the recent past. But there are quite a lot of things that we don’t know with any confidence, giving rise to significant uncertainty when we try to forecast those things. That’s why in today’s episode, we’ll be exploring why climate change is particularly hard to model and predict. We’ll discuss: - The different types of modelling and models used for forecasting, and their relative strengths and limitations, - The benefits of adopting a more multi-disciplinary approach to understanding and tackling climate change, - And the critical need for science to examine climate change more through the lens of risk management. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Speaker’s Bio Prof. David Stainforth, Professorial Research Fellow in the Grantham Research Institute, LSE Dave Stainforth is Professorial Research Fellow in the Grantham Research Institute on Climate Change and the Environment at The London School of Economics and Political Science (LSE), and an Honorary Professor in the Physics Department at the University of Warwick. Dave carries out research on climate science and its relationship with climate economics and policy. He focuses particularly on uncertainty analysis and on how academic assessments can better support decision-making in the context of climate change. His new book, Predicting Our Climate Future, has recently been published, and is the focus of today’s discussion.
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How to Fix Climate Change & Biodiversity Loss at the Same Time
11/07/2024
How to Fix Climate Change & Biodiversity Loss at the Same Time
Hear from Prof. Pete Smith of the University of Aberdeen, as we explore the overlap in the challenges from, and solutions to, climate change and biodiversity loss. Climate change and biodiversity loss are often treated separately – in science, policy, and even risk management. But as the connections between these global crises come into sharper focus, it’s clear that understanding them together is essential for real progress. In this episode, we break down those silos of climate and nature, exploring an integrated approach and how it might help us address these challenges simultaneously. We discuss: How climate and nature impact everything from our food systems to our economies, health and security; The work being done by intergovernmental bodies to connect these issues; And how this work can lead to positive outcomes for climate, nature and society. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: The Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IBPES): IBPES’ upcoming Nexus report: The Joint IPCC-IBPES report on Biodiversity and Climate Change (2021): Soil: An Invisible Crisis and Massive Climate Opportunity: Speaker’s Bio(s) Prof. Pete Smith FRS, Professor of Soils and Global Change, University of Aberdeen Pete is the Professor of Soils and Global Change at the Institute of Biological and Environmental Sciences at the University of Aberdeen (Scotland, UK), and is Science Director of the Scottish Climate Change Centre of Expertise (ClimateXChange). Since 1996, he has served as Convening Lead Author, Lead Author and Author for the Intergovernmental Panel on Climate Change (IPCC), which was awarded the Nobel Peace Prize in 2007. He is a global ecosystem modeller with interests in soils, agriculture, food security, bioenergy, greenhouse gases, climate change, greenhouse gas removal technologies, and climate change impacts and mitigation. He was a Royal Society-Wolfson Research Merit Award holder (2008-2013), and is also a Fellow of the Royal Society of Biology (since 2008), a Fellow of the Institute of Soil Scientists (since 2015), and is a Fellow of the Royal Society of Edinburgh (since 2009). He was awarded the British Ecological Society Marsh Award for Climate Change Research in 2014, and the European Geophysical Union Duchaufour Medal for ‘distinguished contributions to soil science’ in 2017.
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Carbon Pricing: Harnessing the Power of Markets to Drive Climate Action
10/11/2024
Carbon Pricing: Harnessing the Power of Markets to Drive Climate Action
Hear from Gordon Bennett, Managing Director at ICE, as we dive into theory and practice of carbon pricing and its important role in driving the transition to net zero. Carbon pricing is the poster child of market-based solutions to climate change. The principle is simple: by assigning a cost to greenhouse gas emissions, we incentivize polluters to emit less, and to do so in the most cost-effective way. But there’s a significant gap between the theory and practice. Currently, only 24% of global emissions – about 12.8 gigatonnes – are covered by pricing mechanisms such as carbon taxes or cap-and-trade. On top of that, just half a gigatonne was traded in voluntary markets last year. Clearly, there’s still a long way to go. In this episode, we explore the carbon pricing gap, including: Why it exists, what’s needed to close it; The integrity challenges facing voluntary carbon markets, and how to address them; And how central counterparties can help drive the transition by ensuring transparent, reliable pricing. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: The World Bank’s Carbon Pricing Dashboard: Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA): GARP Climate Risk Podcast with Simon Sharpe: The Oxford Offsetting Principles: GARP Climate Risk Podcast with Mark Campanale: Speaker’s Bio(s) Gordon Bennett, Managing Director of Utility Markets and Global Head of Environmental Markets, ICE Gordon has been Managing Director at Intercontinental Exchange, Inc. (ICE) since February 2015. Mr. Bennett is responsible for the sales and business development of ICE’s global environmental portfolio, the world’s largest environmental marketplace. He is a member of the Board of ICE Endex, ICE Futures Abu Dhabi, Spark Commodities and a member of the Strategic Advisory Board of BeZero Carbon. He contributes to a wide range of external environmental and energy market initiatives including a member of the Nature Based Solutions Taskforce of the Sustainable Markets Initiative, the Transition to Net Zero Working Group of the Climate Financial Risk Forum, the City of London VCM Steering Committee, the VCMI Stakeholder Forum, the Advisory Board of the University of Cambridge Energy Policy Research Group and was named Environmental Finance’s sustainable business leader of the year in 2022. Prior to ICE, Gordon spent 12 years at the global energy broker, Spectron, joining as Group Financial Controller and latterly serving as Chief Executive Officer. He is a Fellow of the Institute of Chartered Accountants in England & Wales.
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Rethinking Natural Catastrophe Modeling: New Approaches for a Changing Climate
09/26/2024
Rethinking Natural Catastrophe Modeling: New Approaches for a Changing Climate
Hear from three leading experts in natural catastrophe modeling, as we explore how climate change is causing the insurance industry to rethink their approach to modeling extreme weather. In the previous episode, we discussed the challenges facing the insurance industry from climate change – so in this episode, we’re going to dive into some of the solutions. Since natural catastrophe (Nat Cat) modeling was established in the late 1980s, the predictive power of their models has come from the statistical analysis of historical data. But as climate change continues to push the frequency and severity of extreme weather into uncharted territory, this approach begins to lose some of its potency. In response to this, new ways of thinking about Nat Cat modeling and insurance have emerged, with a focus on better capturing the effects of the changing climate on extreme weather. In this episode, we’ll explore: The power of incorporating physics into the traditional Nat Cat modeling process; The recent explosion of earth system data and the role of machine learning in harnessing it; and How improved Nat Cat modelling can support innovative products, like parametric insurance, and what this means for closing the insurance gap. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: Reask’s Tropical Cyclone Database: Reask’s Tropical Cyclone Wind Model: Reask’s Tropical Cyclone Rain Model: Speaker’s Bio(s) Jamie Rodney, CEO, Reask Jamie Rodney is the CEO of Reask, specializing in extreme weather risk modeling and forecasting. Jamie has over a decade of experience in applying advances in extreme weather analytics to the financial and reinsurance sectors. Jamie is dedicated to leveraging advanced technologies to enhance global climate risk understanding and support organizations in navigating complex climate challenges. Based in Zurich, he leads Reask’s pioneering vision in developing a new class of extreme weather risk measurement capabilities that do not exist today. Jamie holds a PhD in Mathematics from University College London. Thomas Loridan, Co-Founder and Chief Science Officer, Reask Thomas Loridan is Co-founder and Chief Science Officer at Reask, where he leads the development of cutting-edge natural catastrophe models using machine learning to quantify global climate risk. Holding a PhD in Boundary Layer Meteorology from King’s College London (2011), Thomas has deep expertise in atmospheric sciences and computational modeling. His work includes the creation of advanced wind field models for tropical cyclones and the integration of high-resolution data into probabilistic frameworks. David Schmid, Head of Global Data Product, Reask David Schmid is the Global Head of Data Products at Reask, where he oversees the development of products for risk assessment, parametric insurance and early warning systems. With over 15 years of experience in natural catastrophe risk modelling and parametric insurance, David has held roles at Glacier Re, NewRe, and Munich Re Capital Partners, where he contributed to advancing risk assessment and pricing standards. At Reask, David remains committed to developing innovative solutions that address the evolving needs of policyholders, brokers, and risk carriers.
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Uninsurable: The Future of Insurance in a Changing Climate
09/05/2024
Uninsurable: The Future of Insurance in a Changing Climate
Hear from two leading experts, as we explore how insurance is adapting to climate change and the role of the industry beyond underwriting. Insurance plays a critical role in protecting households and businesses from the impacts of climate change, and with physical risks on the rise, it will become ever more important. However, insurers have also been significantly impacted by these risks, with annual losses from natural catastrophes exceeding 100 billion dollars for four consecutive years. The primary concern is that these physical risks eventually become uninsurable, as we are already seeing for example with wildfires in California, leaving communities without the very protection that they most need. In this episode, we explore how the insurance industry has and should respond to these challenges, including: How insurance modelling must evolve to better capture the physical risks from climate change; The role of insurers in helping clients and policymakers understand and prepare for physical climate risks; and Why adaptation is now a top priority for allowing insurance to be effective and help spread climate resilience across our society and economy. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Speaker’s Bio(s) Annemarie Büttner, Lead Climate Risk Solutions, Swiss Re Annemarie leads on corporate climate risk solutions at Swiss Re, helping companies identify, assess, reduce, and report the impacts of climate change to their businesses. She has 10-years’ experience focused on consulting and insurance, working on a range of topics including renewables, natural catastrophes, and parametric insurance. Swenja Surminski, Managing Director Climate and Sustainability, Marsh McLennan Swenja is the managing director of climate and sustainability at Marsh McLennan, as well as a Professor in Practice at the London School of Economics. In her career as an academic, Swenja researched climate risk management and resilience strategies, with a focus on public policies, financial instruments and individual behaviour. She has also held several advisory roles with corporates, regulatory authorities and governments, including the Bank of England and the World Bank.
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Urban Resilience: How Our Cities Must Adapt to Climate Change
07/25/2024
Urban Resilience: How Our Cities Must Adapt to Climate Change
Hear from Emma Howard Boyd CBE, Chair of the London Climate Resilience Review, as we dive into the challenges of climate adaptation and what it means for our cities. 2023 was not only the warmest year on record, it also marked the warmest 10-year period on record. As we witness first-hand the impacts of a warming climate, including heatwaves, more intense precipitation and increased flooding, the case for building resilience against these risks becomes ever more important. This is particularly so in our cities, where the concentration of populations and economic activity make adaptation non-negotiable. This episode’s guest has recently led a comprehensive review of the Climate Resilience of London, which takes stock of the city’s preparedness for climate impacts and makes a series of recommendations for how the city needs to bolster its efforts. In this episode, we explore: How cities are vulnerable to cascading and interconnected risks, which amplify the impacts of climate change; How a collaborative approach to learning and building resilience will be critical in the years ahead; And how adaptation and resilience need to be woven through our all our decision making, while paying particular attention to the most vulnerable communities To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: Read the final report of the London Climate Resilience Review: C40 Cities Climate Leadership Group: Thames Estuary 2100 Group report directory: Speaker’s Bio(s) Emma Howard Boyd, Chair, London Climate Resilience Review Emma has been the Chair of the London Climate Resilience Review, leading the delivery of its work since summer 2023. She has had an extensive career in financial services at the forefront of the climate change, environmental and sustainable finance agenda. Emma is also currently Chair of ClientEarth and a Global Ambassador for Race to Zero and Race to Resilience, and outgoing Chair of the Green Finance Institute. She has been Chair of the Environment Agency and an ex-officio board member of the Department for Environment, Food and Rural Affairs from 2016 to 2022. Emma serves on several boards and advisory committees which include The Major Projects Association, Climate Arc, and the European Climate Foundation. She was the UK Commissioner to the Global Commission on Adaptation from 2018 until its sunset in January 2021.
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GARP’s Sustainability & Climate Risk Certificate: Register Now
07/16/2024
GARP’s Sustainability & Climate Risk Certificate: Register Now
In this special episode, hear from Tony Rooke, Executive Director at Howden Group Holdings and Beth Gould Creller, GARP’s Sustainability & Climate Risk Program Lead, as they discuss the recent improvements to the SCR’s syllabus and learning experience. Long-time listeners of the podcast will have noticed that we often mention GARP’s Sustainability & Climate Risk (SCR) Certificate. It’s a program that GARP launched in 2020, providing all the foundational knowledge you need to become a climate risk leader within your own firm. This episode is a special one, as we bring you a conversation between Beth Gould Creller, who heads up GARP’s SCR team, and Tony Rooke, who alongside his role at Howden, is a member of the SCR Advisory Committee and long-time supporter of the program. You’ll learn about: The latest update to the SCR Curriculum, including new topics like nature risk and transition plans; The enhanced e-learning platform, including practical, hands-on modules; And testimonials from candidates on how the certificate has advanced their skills and careers. The SCR certificate is not only an excellent opportunity to boost your knowledge, but it also connects you with a global community of climate risk experts, fostering collaboration and innovation. Register before 31st July to save USD $100. Follow this link to find out more: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Speaker’s Bio(s) Tony Rooke, Executive Director and Head of Transition Advisory, Howden Group Holdings Tony is Executive Director in the Climate Risk and Resilience team at Howden, and head of climate transition advisory. He helps organisations plan and achieve their climate goals, to identify and manage climate risks, and then optimise returns from their transition investments. Tony has over 25 years global experience in strategy advisory, risk management, disclosure and programme delivery, with over 18 years as a leader and expert in climate change, environment and sustainability issues affecting businesses and financial institutions. Prior to Howden, Tony was Head of Transition Finance and Transition Planning at the Glasgow Financial Alliance for Net Zero (GFANZ), Senior Director for Transition Risk at WTW, and Global Technical Director for the Carbon Disclosure Project (CDP), the world’s largest environmental disclosure platform. He has contributed to regulatory, policy and industry work including transition planning and transition finance standards (the UK’s Transition Planning Taskforce and GFANZ), the reporting standards (EU EFRAG, CDSB, CDP, TCFD), and strategic use of models, pathways and scenarios (International Energy Agency (IEA), NGFS, MPP, CFRF, GFANZ). Tony is a member of GARP and on Sustainability and Climate Risk (SCR) certification advisory committee. He is additionally a fellow of both the Institute of Environmental Management and Assessment (IEMA) and the Royal Society of Arts, Commerce and Manufacture (RSA). Beth Gould Creller, Sustainability & Climate Risk Program Lead, GARP Beth manages GARP's Sustainability and Climate Risk Program. Prior to joining GARP, she was a risk professional in the upstream oil and gas industry. Working across multiple continents, her energy career spanned enterprise risk management, internal audit, business controls, supply chain process improvement, and governance.
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Why NDCs Aren’t Working and How to Fix Them
07/04/2024
Why NDCs Aren’t Working and How to Fix Them
Hear from Lord Adair Turner, Chair of the Energy Transitions Commission, as we explore the shortcomings of nationally determined contributions and how they might be improved. Nationally determined contributions, or NDCs, are a bit like transition plans for countries, in that they set out what a country plans to do in order to meet the ambitions of the Paris Agreement. However, NDCs are voluntary, and collectively they don’t currently have us on track to limit global warming to less than 2 degrees, let alone the more ambitious target of 1.5 degrees. Today’s guest believes that this is a problem, as NDCs are failing to provide a clear direction for action. The less clarity there is about policy direction and ambition, the less likely markets will respond to policy signals to deliver the investment required for the transition. That’s why in this episode, we examine: What are the shortcomings in countries’ NDCs and how they can be addressed? Why NDCs don’t currently reflect the rapid technological progress that is already being made across sectors; and How geopolitics is influencing the transition and the challenges facing climate finance. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: Energy Transitions Commission: Credible Contributions: Bolder Plans for Higher Climate Ambition in the Next Round of NDCs: Mission Possible: Reaching net-zero carbon emissions from harder-to-abate sectors: Climate Change Committee: Just Capital: The Liberal Economy: The Economics of Climate Change: The Stern Review: Finance for climate action: scaling up investment for climate and development: Speaker’s Bio(s) Lord Adair Turner, Chair, Energy Transitions Commission Lord Turner chairs the Energy Transitions Commission, a global coalition of major power and industrial companies, investors, environmental NGOs and experts working out achievable pathways to limit global warming to well below 2˚C while stimulating economic development and social progress. Lord Turner has chaired several high-profile organizations, including at the Institute for New Economic Thinking, the UK’s Financial Services Authority, the Climate Change Committee, the Pensions Commission and the Low Pay Commission. He was also Director General of the Confederation of British Industry. He became a crossbench member of the House of Lords in 2006. He is also a Trustee Emeritus of the British Museum, honorary fellow of The Royal Society, and received an Honorary Degree from Cambridge University in 2017.
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Why Nature Belongs in Corporate Thinking
06/13/2024
Why Nature Belongs in Corporate Thinking
Hear from Robin Millington, CEO of Planet Tracker, as we discuss how and why businesses should be thinking about their dependencies and impacts on nature. Sustainability is a complex topic, and for a long time, climate has been at the heart of discussion. Other challenges like pollution and biodiversity loss have often been sidelined. Recently however, following the work of the TNFD and others, these issues have risen up the corporate agenda, within the wider context of our impact and dependency on nature. Throughout her career, this guest has highlighted the importance of integrating nature into mainstream business. In this episode, we’ll explore: The urgent need to manage climate and nature risks holistically; How our failure to value natural capital correctly is pressurizing the global food system and other key sectors; And the role that financial markets have in creating a nature-positive future. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: Planet Tracker homepage: Carbon Tracker homepage: The Financial Markets Roadmap for Transforming the Global Food System: Speaker’s Bio Robin Millington, CEO, Planet Tracker Having dedicated nearly three decades to environmental causes including climate, biodiversity/nature and wetlands/water, Robin is an experienced senior director with an extensive track record including as a Director with the European Climate Foundation, Founding Director of Wetlands International and Managing Director of the Centre for European Policy Studies (CEPS) in Brussels. Previously she spent many years in the private sector both in consulting and in multinational work. She has an MBA from INSEAD and her BA from Stanford University. She is currently a member of the Supervisory Board of the Capitals Coalition, was previously a member of the Supervisory Board of the Gold Standard Foundation and serves on various advisory committees.
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Accelerating the Transition: Reflections of a Shareholder Activist
05/23/2024
Accelerating the Transition: Reflections of a Shareholder Activist
Hear from Catherine Howarth OBE, CEO of ShareAction, as we dive into the world of shareholder activism and how it can be used to guide institutional investors towards sustainable behaviours. Moving away from fossil fuels is unambiguously the most crucial step in the transition to a sustainable net-zero world. And yet, governments and institutional investors worldwide continue to heavily subsidise and invest in the fossil fuel industry. The longer we delay the transition, the greater the risks that we face. So, how can we break this cycle? Today’s guest has been focused on this and other sustainability issues throughout her career. That’s why in this episode, we’ll be exploring her world of shareholder activism, discussing: The toolkit for influencing institutional investors, including naming and shaming the worst performers; The different challenges when engaging with banks, insurers, and asset managers; And how shareholder activism can go beyond climate to create a more sustainable future for us all. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: ShareAction’s homepage - Living Wage Foundation’s homepage - Speaker’s Bio(s) Catherine Howarth OBE, CEO of ShareAction Catherine has been Chief Executive of ShareAction since July 2008. ShareAction is the leading civil society organisation in Europe promoting responsible investment, transparency and good governance by institutional investors. Catherine is a board member of the Scott Trust, owner of the Guardian Media Group, and a member of HM Treasury’s task force on asset management. She was a Member Nominated Trustee of The Pensions Trust (the multi-employer pension scheme for the UK’s not-for-profit sector) for five years, where she served on the Investment Committee of this £7bn fund. In 2011, Catherine was named a ‘Rising Star of Corporate Governance’ by Yale University’s Millstein Center, and in 2014 she was recognised by the World Economic Forum as a Young Global Leader in 2014. Catherine holds a First Class BA in Modern History from Oxford University and an MSc in Industrial Relations from the London School of Economics.
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AI, ESG and 1.5 Degrees: UNEP FI Reports at the Frontier of Climate Risk
05/02/2024
AI, ESG and 1.5 Degrees: UNEP FI Reports at the Frontier of Climate Risk
Hear from David Carlin, Head of Risk at the UNEP Finance Initiative, as we dive into their latest reports covering the climate risk tool landscape, the use of AI in disclosures, and 1.5 degree warming scenarios. As the world’s leading authority on the environment, the United Nations Environment Programme (or UNEP), has a mission to inspire, inform, and enable nations and peoples to improve their quality of life, without compromising that of future generations. And, they recognise the critical role of the financial system in achieving this goal. Through UNEP FI – their Financial Initiative – they convene networks of banks, insurers and investors to help accelerate sustainable development, as well as manage the associated risks. Today’s guest is an energetic part of this network, helping financial firms tackle issues such as climate scenario analysis, climate risk assessments, and navigating the world of sustainability regulation. In this episode, we’ll explore some key insights from his work, including: · How the landscape of climate risk tools and analytics providers is changing, for example with the increased use of Machine learning and AI; · The challenges of translating the science of climate change to actionable insights for financial practitioners. · And our guests’ secrets for reaching 100,000 followers on LinkedIn to help drive awareness of these vitally important topics. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: UNEPFI homepage – UNEPFI’s 2024 Climate Risk Landscape Report – David Carlin’s LinkedIn page - Speaker’s Bio David Carlin, Head of Risk, United Nations Environment Programme Finance Initiative (UNEPFI) David and his team support financial actors across the world to develop best practices for managing environmental risks and identifying environmental opportunities. Alongside his current role, David advises the Task Force on Nature-related Financial Disclosures (TNFD) and the Net-Zero Banking Alliance (NZBA) and is the founder of Cambium Global Solutions, which helps governments, corporations, and financial institutions address environmental challenges. Prior to his current role, David worked as a Principal in Finance, Risk, and Public Policy for Oliver Wyman.
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The Psychology of Climate Change: How to Build Consensus through Communication
04/11/2024
The Psychology of Climate Change: How to Build Consensus through Communication
Hear from George Marshall, Author of “Don’t Even Think About It: Why Our Brains Are Wired To Ignore Climate Change,” as we dive into the psychology of climate change. If you follow this podcast, you probably already have a good understanding of the nature of climate change, the risks it poses and why we need to act decisively and with urgency. But many people don’t listen to the podcast, and even if they did, they might think it was a lot of nonsense. Depending on people’s worldview, values, and socio-cultural background, the same message can be interpreted in many ways. That’s why in today’s episode, we’re focusing on the psychology of climate change. We’ll be exploring questions such as: · What is it about the human brain that makes it so hard for us to accept the reality of climate change and take steps to address it? · How is it possible that, when presented with overwhelming evidence of climate change, even the evidence of our own eyes, we can still choose to ignore it? · And given our biases and shortcomings, how can we still find effective ways to communicate the dangers of climate change to audiences that are typically closed off to receiving those messages? To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Speaker’s Bio George Marshall, Author and Climate Change Communication Expert George is a consultant in the public communication of climate change, and the psychological obstacles to attitude and behaviour change. His key interest is the design of narratives that can build a consensus for climate action across the whole of society. His insights draw on hundreds of focus groups and structured interviews listening to people expressing their hopes, fears and doubts about climate change. His book “Don’t Even Think About It: Why Our Brains Are Wired to Ignore Climate Change”, explores the social and psychological obstacles to climate action. It is currently on its seventh printing and was listed by Esquire as one of the ‘15 essential books on climate change.’
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Five Times Faster: Ways to Accelerate the Transition to Net-Zero
03/21/2024
Five Times Faster: Ways to Accelerate the Transition to Net-Zero
Hear from Simon Sharpe, Director of Economics at the UNFCCC Climate Champions, as we explore three key problems that are impeding the transition to net-zero and how to address them. We know that reaching net zero emissions quickly enough to avoid the worst impacts of climate change will be very challenging. But are we making it even more difficult than it needs to be? Today’s guest thinks so, particularly when it comes to climate science, economics, and climate diplomacy. That’s why in today’s episode, we’ll be looking at how we could make all three work more effectively. We’ll explore: · How climate science must change in order to generate meaningful action within our political institutions; · How economists became overly fixated on carbon pricing, while missing other policies that would be even more impactful in accelerating the transition to net zero; · And how the current model of climate diplomacy could be altered to allow for faster net zero negotiations. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Speaker’s Bio Simon Sharpe, Director of Economics, UNFCCC Climate Champions Simon took up his current role in early 2022, having previously held several senior positions in the UK government, including as Deputy Director of the COP26 Unit, and as Head of Climate Change Strategy for both the Foreign, Commonwealth & Development Office, and the Department for Business, Energy and Industrial Strategy. In 2013-15, he created an international climate change risk assessment project, working with experts from the UK, USA, China, India, and other countries. In addition to influencing the understanding and assessment of climate change risk in its partner countries, its findings were extensively cited by the Scientific Advisory Board of the UN Secretary General. It also inspired new thinking in the academic community, with a lead author of the Intergovernmental Panel on Climate Change using it to argue that ‘climate science needs to take risk assessment much more seriously’. More recently, he has worked with partners in the UK, China, India and Brazil to create the world’s first government-backed project to apply complexity economics to climate change. His paper on economic tipping points, ‘Upward-scaling tipping cascades to meet climate goals: plausible grounds for hope’, was the most downloaded paper in Climate Policy journal in 2021. Simon has published influential reports and created ground-breaking international projects in climate change risk assessment, economics, and diplomacy. His recent book, “Five Times Faster,” draws from Simon’s ten years’ experience at the forefront of climate change policy and diplomacy.
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The Inevitable Policy Response Forecast: Optimistic or Realistic?
02/29/2024
The Inevitable Policy Response Forecast: Optimistic or Realistic?
Hear from Dr. Jakob Thomae, Project Director for the Inevitable Policy Response, as we discuss their latest forecast and what it means for the transition to net-zero. Scenario analysis is the natural tool for anyone wanting to understand how climate-related risks might evolve over coming decades. The vast majority of climate scenarios, regardless of who produced them or what level of warming they predict, tend to report similar levels of physical risk over the next couple of decades or so. However, predictions about transition risk tend to be quite different between scenarios. This episode focuses in on the transition, and in particular the extraordinary work being done by the Inevitable Policy Response (IPR) to figure out the most likely course of the transition to net zero. We’ll explore: · The IPR’s surprisingly optimistic forecast, and they believe the world might look like by the end of the century; · The methodology behind their forecast, and how it differs from the scenarios produced by other groups; and · What this forecast means for risk and finance professionals. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: The Inevitable Policy Response: Theia Finance Labs (formerly known as the 2° Investing Initiative): Jakob’s first book, ‘The Kill Score: On the Trail of Our Ecological and Social Footprint’: Paris Agreement Capital Transition Assessment (PACTA): The International Energy Agency (IEA): How Bad are Bananas? by Mike Berners-Lee: Jakob’s second book, ‘The Little Book of Big Risks: From Atomic Bombs to a Zombie Apocalypse’: Speaker’s Bio Dr. Jakob Thomae, Project Director, Inevitable Policy Response Jakob Thomae is one of the leading global experts on sustainable finance and long-term risks. In June 2023, Jakob was appointed Project Director for the Inevitable Policy Response (IPR), a climate transition forecasting consortium commissioned by the Principles for Responsible Investment. The IPR helps investors navigate the risks and opportunities arising from climate policy acceleration, volatility and transition. Jakob is the co-founder of Theia Finance Labs (formerly known as the 2° Investing Initiative) where he currently serves as Research Director. Jakob is also Professor in Practice at SOAS, University of London, where he teaches a Green Finance course. His recent book "The Kill Score” explores the impact of sustainability on human lives. Jakob has served as advisor to central banks around the world including the Japanese Financial Services Agency, the Brazilian Central Bank, the Bank of Thailand, the Bank of England, the Bundesbank, the Dutch Central Bank, and EIOPA. He holds a PhD in Finance from the Conservatoire National des Arts et Metiers.
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EU Deforestation Directive: Overcoming Challenges in Supply Chain Transparency
02/08/2024
EU Deforestation Directive: Overcoming Challenges in Supply Chain Transparency
Hear from Thomas Vaassen, Co-Founder and CEO of Meridia, to learn how the EU Deforestation Directive is changing the nature of data required across supply chains. Supply chains are becoming an ever-greater focus for risk professionals. Firms increasingly want to measure the carbon footprint of their suppliers, or better understand their resilience, in the face of increasingly severe weather shocks. We are also seeing legislation driving greater transparency, which hinges on our ability to get accurate data. Although often taken for granted in the developed world, having good quality data on property rights is not a given in many parts of the world and this, in turn, makes analysis of complex and often remote components of supply chains very challenging. That’s why today’s episode will focus on: How legislation, such as the European Deforestation regulation, is changing the data landscape for firms; The practical challenges for obtaining good quality property rights data in remote locations; and How the world of data might change over coming years, with advances in technology and data collection. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Speaker’s bio Thomas Vaassen, Co-Founder and CEO of Meridia Thomas is currently the CEO of Meridia, a data partner that focuses on traceability and transparency, living income, and regenerative agriculture. Prior to this role, he was the Founder and CTO of Meridia, where they provided affordable land documentation to smallholder farmers. Thomas also served as the Program Director of the Investment Ready Program NL, where he helped green ventures prepare for investment and growth. Thomas has a background in managing social and sustainable initiatives, as Managing Director of Impact Hub Amsterdam, and the Chairman of the Board for Impact Hub Association. Additionally, he co-founded Blik-Opener, an organization that offers career coaching and development programs. Thomas also has experience in consulting, as a Founding Partner of Realize!, a consulting company that specializes in organizing for fast growth.
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What We Learned About Climate Risk in 2023
01/18/2024
What We Learned About Climate Risk in 2023
Hear from Jo Paisley and Maxine Nelson of the GARP Risk Institute as they look back on key learnings from the latest season of the Climate Risk Podcast. As we head into 2024, Jo and Maxine look back at the past year of Climate Risk Podcasts, reviewing key learnings from our guests and discussing ongoing trends in climate risk management. From academics to ambassadors, CEOs to entrepreneurs, we’ve upheld our promise to showcase a variety of different perspectives on climate risk and sustainability. This episode re-examines the rich knowledge that has been shared on the Climate Risk Podcast over the last 12 months, creating a narrative of climate and nature risk wisdom to guide our listeners through this fast-moving field. So, today’s episode will explore: What we’ve learnt about the physical risks associated with climate change and nature loss; The key risks that arise in the transition to a net-zero world; and How financial firms are managing these risks. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: Links to featured episodes: David Schimel and Pooja Khosla - Dr. Erica Thompson - Rohan Hamden - Mike Azlen - Dr. Nicola Ranger - Simon Zadek - Professor Jo Handelsman - Nigel Topping - Jane Stevensen - Nicky Dee - Natalia Dorfman - Carys Taylor - Chris Howland and Lars Popken - Ron Dembo - Also discussed in this episode: GARP Whitepaper - Today’s Speakers Jo Paisley, President, GARP Risk Institute Maxine Nelson, Ph.D, Senior Vice President, GARP Risk Institute
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The Power and Pitfalls of Models in Climate Risk Management
12/14/2023
The Power and Pitfalls of Models in Climate Risk Management
Hear from Dr. Erica Thompson, as we examine the modelling ecosystem and when we need to escape it to make real-world decisions. Climate science – like many areas of our lives, such as economics or public health – is based upon models. These models are often used to justify certain courses of action, such as investments in climate mitigation or adaptation, or even lock downs during the pandemic. But what makes a ‘good model’? Is it purely how well it forecasts? Or are there other aspects that we need to consider, such as reliability, complexity, and how well it deals with uncertainty? And who gets to decide how good a model is? In this episode, we’ll take a closer look at these questions and explore some of the nuances of models, including: · How to judge how good a model is, · The vital importance of understanding the values which underpin models · And how models have the power to shape the very future which they forecast. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: Praise for Escape From Model Land: IPCC Working Group III 2022 Mitigation of Climate Change report: Yale’s William Nordhaus wins 2018 Nobel Prize in Economics: Speaker’s Bio Erica Thompson, Associate Professor of Modelling for Decision Making at UCL’s Department of Science, Technology, Engineering and Public Policy Erica’s book, Escape from Model Land: How Mathematical Models Can Lead Us Astray and What We Can Do About It, was published in December 2022 and was shortlisted for Best Maths Book of 2022 by Chaulkdust Magazine, a specialist magazine for mathematicians. Erica moved into her current role in April 2023, where she investigates the appropriate use of mathematical modelling to support real-world decisions, from mathematical and statistical questions about methodologies of inference from models, to psycho-social questions about the formation of confidence and the role of expert judgement. Erica is also a Fellow of the London Mathematical Laboratory, where she leads the research programme on Inference from Models, and is a Visiting Senior Fellow at the LSE Data Science Institute. Erica previously held a series of roles at the LSE’s Centre for the Analysis of Time Series, initially as a Senior Policy Fellow, and subsequently as Co-Director and Acting Director. Erica holds a BA in Experimental and Theoretical Physics and a Master of Mathematics degree from Cambridge University. She completed her PhD in Physics at Imperial College London.
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Bridging the Gap between Climate Science and Risk Management
11/30/2023
Bridging the Gap between Climate Science and Risk Management
Hear from David Schimel and Pooja Khosla of Entelligent, as we explore the intersection of climate science and risk management. For over 30 years, the Intergovernmental Panel on Climate Change, or IPCC, has reported on the future physical impacts of climate change, based on the best available science. But these predictions have tended to underplay the likelihood of extreme risks. This is in part because scientists have focused more on the centre of the distribution rather than the extremes, which is likely to have been in part a reaction against an increasingly politicised level of scrutiny. However, for risk professionals, the tails of the distribution are of particular importance. They also need also to think about the nature of the transition, which will depend on a number of factors, such as technological improvements and policy changes. Here, we have also seen systematic errors – for example, just consider the errors in forecasting the cost of solar energy. So in today’s episode, we’ll take a closer look at the balance of these errors on the physical and transition side. We’ll explore the intersection of climate science and risk management, including: How the politicization of climate change has shaped how climate scientists communicate its risks and opportunities. The challenge of translating climate science into actionable financial risk data; and How ignoring the less likely impacts of climate change can lead to greater losses and missed opportunities. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: - Entelligent homepage: - Intergovernmental Panel on Climate Change’s Fourth Assessment Report: - NASA Jet Propulsion Laboratory: - Article: Do Two Climate Wrongs Make a Right? By David Schimel and Charles Miller: Speakers' Bios David Schimel, Co-Founder and Chairman of the Board at Entelligent, and Senior Research Scientist at NASA’s Jet Propulsion Laboratory Dave is the Co-Founder and Chairman of Entelligent, and a Senior Research Scientist at NASA's Jet Propulsion Laboratory. He has a 30-plus-year career working in top research positions and leadership roles in carbon cycle climate interactions and global climate modelling. Dave was a Convening Lead Author for the IPCC's Fourth Assessment Report, for which it was awarded the Nobel Peace Prize in 2007. In 2012, he was named a Fellow of the Ecological Society of America. Pooja Khosla, Chief Innovation Office, Entelligent Pooja is the Chief Innovation Officer of Entelligent, and along with Dave, invented the company’s patented Smart Climate® technology. A data scientist and econometrician, Pooja’s 15-year career has focused on predictive modelling, microfinance, and the design of investment tools. She has a Ph.D. in Economics from the University of Colorado Boulder, and speaks and writes extensively on climate risk and investment.
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TNFD and Beyond: An Introduction to Nature in Finance
11/09/2023
TNFD and Beyond: An Introduction to Nature in Finance
Hear from Simon Zadek, Executive Director at NatureFinance and Senior Advisor to the TNFD, as we explore the growing intersection of nature and finance. With the recent release of the Taskforce on Nature-related Financial Disclosures Framework (TNFD), the idea of nature risk is now in the spotlight for many finance professionals. Even though some may have encountered elements of ‘nature’ in their work before, for example when looking at supply chain risk, it may not have been labelled as such. And with many just getting to grips with climate risk management, there is an open question around how to incorporate nature-related issues. That’s why in today’s episode, we’ll take a closer look at the concept of nature in finance. We’ll reflect on: How it’s defined, and what risks it presents to our economies; What the TNFD framework covers and what this means for risk professionals; and The risks and opportunities that nature presents. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on nature and climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: NatureFinance homepage: Recommendations of the TNFD: Taskforce on Nature Markets homepage: EU Carbon Border Adjustment Mechanism (CBAM): EU Regulation on deforestation-free products: Report - Making Nature Markets Work (Taskforce on Nature Markets): Report - Breaking the Environmental Crimes-Finance Connection (NatureFinance): Report - More for Less: Scaling Sustainability-linked Sovereign Debt (NatureFinance): Speaker’s Bio Simon Zadek, Executive Director at NatureFinance and Senior Advisor to the TNFD Simon currently holds a number of leadership roles, including Executive Director at NatureFinance, co-lead of the Taskforce on Nature Markets, and Senior Advisor to the TNFD, Chair of Finance for Biodiversity, and Director of Migrant Nation. Simon has also previously held many senior roles within the UN, including as Head, Secretariat, UN Secretary General’s Task Force on Digital Financing of the Sustainable Development Goals, as Senior Advisor on Finance in the Executive Office of the Secretary General, and as Co-Director of UNEP's Inquiry into the Design of a Sustainable Financial System. In these roles, he co-Chaired China’s Green Finance Task Force, and led the Green Finance Study Group secretariat under the Chinese, German and Argentinian G20 Presidencies. Prior to this, he was Senior Advisor to the World Economic Forum and the Global Green Growth Institute, founder and CEO of the international think tank, AccountAbility and Development Director of the New Economics Foundation. He was Visiting Professor at the Singapore Management University and the Copenhagen Business School, and has been a senior fellow at Tsinghua School of Economics and Management, Harvard`s Kennedy School of Government, and the University of Southern Africa, amongst others. He has worked with many corporations, governments and multi stakeholder initiatives on their sustainability and broader strategies, been a member of the International Advisory Board of Generation Investment Management, and has published extensively, including the award winning book, The Civil Corporation.
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The COP28 Survival Guide: How it Works and What to Expect
10/19/2023
The COP28 Survival Guide: How it Works and What to Expect
Hear from Nigel Topping, Former UN Climate Change High-Level Champion for COP26, as we set the scene for COP28 in Dubai. The COP, or Conference of Parties, is the annual convention of the signatories of the United Nations Framework Convention on Climate Change (UNFCCC). This is where all the high-level decision-making around the global transition to net-zero occurs – as such, it’s an incredibly important event for stakeholders all around the world. With the next one just around the corner, this episode will set the scene for COP28 in Dubai, explaining the inner workings of the COP and identifying the key issues up for discussion. We’ll explore: The successes and shortcomings of the COP mechanism, and how it squares up to the challenge of multilateral negotiations; The complex ecosystem of government, business, civil society and lobbying that has coalesced around the formal proceedings, and the challenges and opportunities that it brings; And the headline issues that will be faced (and hopefully resolved) over the course of COP28. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: UNFCCC High-Level Champions - Our Episode with Sir Dieter Helm - UNFCCC, Global Stocktake - The Inevitable Policy Response - Institute and Faculty of Actuaries/University of Exeter, The Emperor’s New Climate Scenarios - Rocky Mountain Institute, X-Change: Electricity - Speaker’s Bio Nigel Topping, Global Ambassador with the UN Climate Change High-Level Champions As one of the 14 Global Ambassadors, Nigel was selected by the UN to help accelerate the implementation of net-zero targets and climate adaptation. Until November 2022, Nigel was the UN Climate Change High-Level Champion from COP26 in Glasgow, having been appointed by the UK Prime Minister in January 2020. Working alongside Egypt’s High-Level Champion for COP27, Dr. Mahmoud Mohieldin, Nigel helped strengthen collaboration and drive action from businesses, investors, organisations, cities, and regions on climate change, and coordinate this work with governments and Parties to the UN Framework Convention on Climate Change (UNFCCC). Previously, Nigel was CEO of We Mean Business, a coalition of businesses working to accelerate the transition to a net-zero economy. Before that, he was Executive Director of the CDP, following an 18-year career in the private sector, having worked across the world in emerging markets and manufacturing. Nigel is also a non-executive director of the UK Infrastructure Bank, and is a member of the UK’s Climate Change Committee.
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Dealing with Uncertainty in Scenario Analysis: Stochastic vs. Deterministic Approaches
09/28/2023
Dealing with Uncertainty in Scenario Analysis: Stochastic vs. Deterministic Approaches
Hear from Ron Dembo, Founder and CEO of riskthinking.ai, as we apply stochastic thinking to the challenge of climate scenario analysis. One of the most difficult aspects of managing climate risk is its inherent uncertainty. Because we can’t know with absolute confidence what our future climate, economy or society will look like, we therefore can’t know exactly when, where, or how intensely climate risks will manifest. A technique commonly applied to this problem is scenario analysis. By building a picture of what the future might look like, firms can formulate risk management strategies appropriate for that scenario. However, today’s guest believes we’re only scratching the surface of what scenario analysis can do for our financial institutions. In today’s episode, we’ll home in on the idea of stochastic scenario analysis; what it is, how it works, and what makes it different to the traditional approach to scenario analysis. We’ll explore: · The difference between deterministic and stochastic scenario analysis; · The advantages of using large sets of scenarios generated by expert judgment; and · What stochastic scenario analysis means for risk professionals. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: · Speaker’s Bio Ron Dembo, Founder and CEO, riskthinking.ai Ron is an academic, author, entrepreneur, and consultant to the some of the world’s largest corporations and banks. He has had a distinguished academic career as a professor at Yale University and as visiting professor at MIT. He is a Lifetime Fellow of The Fields Institute for Research in Mathematical Sciences, and has received numerous awards for his work in mathematical optimization, finance, and climate change. Ron was previously the Founder and CEO of Algorithmics, an enterprise risk management software provider with over 70% of the world’s top 100 banks as clients. After Algorithmics was acquired by Fitch Group, Ron later founded riskthinking.ai, a company pioneering the use of stochastic analysis to accurately price climate risk into the financial markets.
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License to Drill: What New Oil & Gas Extraction Means for the Energy Transition
09/07/2023
License to Drill: What New Oil & Gas Extraction Means for the Energy Transition
Hear from Jane Stevensen of JS Global Advisory, as we examine the overall progress of the global energy transition. We always knew that the transition to net-zero wasn’t going to be smooth. Political realities must be considered, especially during a period of increased concern over energy security. A good recent example of political backsliding is the UK government’s controversial decision to grant over a hundred new oil and gas licenses in the North Sea, despite a legally binding commitment to reach net zero by 2050. Although the UK is not alone, there are some encouraging signs of progress in other policy domains. It’s a matter of where the balance lies. That’s why in this episode, we explore some solutions needed to manage the risks during this uncertain transition, such as: Abandoning short-term thinking in favour of long-term strategies that align with our net-zero and socio-economic goals; Using ESG reporting frameworks as a tool for developing resilient business strategies, rather than as an annual chore; and Leveraging the information from reporting frameworks to ensure decision-makers are held accountable for their actions. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: - UK Government’s press release regarding the new North Sea oil and gas licenses – - JS Global Advisory homepage - - International Energy Agency’s Net-Zero by 2050 report - - Climate Change Committee’s letter to Rishi Sunak – - Top ten countries currently developing the most oil and gas fields - - International Sustainability Standards Board’s inaugural standards - Speaker’s Bio Jane Stevensen, Founding Partner, JS Global Advisory Jane has over 20 years’ experience advising businesses on sustainability strategy and the implementation of TCFD, ISSB and other ESG reporting frameworks. Prior to founding JS Global Advisory, she held a number of senior positions, including leading Grant Thornton’s Sustainability practice, and as Managing Director of the Climate Disclosure Standards Board. She holds an MBA from INSEAD and is a graduate of the Cambridge Institute for Sustainability Leadership.
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Climate Risk Taxonomies 101: A User Guide
07/27/2023
Climate Risk Taxonomies 101: A User Guide
Hear from Bob Buhr of the Imperial College Business School, as we explore ways of organizing the risks from climate change. A risk taxonomy is a key underpinning of enterprise risk management. Used by firms to create a common risk language, it underpins a range of activities, such as risk identification, risk appetite setting and risk horizon scanning. But when it comes to the risks arising from climate change, there has been a bit of a vacuum. Some firms have chosen to use ‘green’ taxonomies. But these were set up for a different purpose – that is to classify the sectoral investment opportunities from the transition to a net zero or ‘green’ economy. That’s why in today’s episode, we’ll be looking at how firms can overcome this gap, by examining a taxonomy that has been set up specifically to classify potential firm-specific climate risks. We’ll explore: The challenges facing firms from a lack of suitable risk taxonomies; What the key categories within a climate risk taxonomy ought to be; and Why and how biodiversity loss and natural capital risks should be incorporated. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: Bob’s latest book, “Climate Risks: An Investor's Field Guide to Identification and Assessment” - Eila Kreivi on the GARP Climate Risk Podcast – UNEP FI’s annual climate adaptation gap reports – Jo Handelsman on the GARP Climate Risk Podcast – McKinsey’s report on natural capital - Speaker’s Bio Bob Buhr, Honorary Research Fellow, Centre for Climate Finance and Investment, Imperial College Business School Over a 30-year career, Bob has worked at major rating agencies, asset managers, hedge funds and banks, and was often cited as a top-ranked bond analyst in various investor polls. He has published ESG and climate-related reports and written on environmental risks for years and has engaged with a variety of NGOs on climate and natural capital-related issues. He is the author of Climate Risks: An Investor's Field Guide to Identification and Assessment. Bob holds a bachelor’s degree from Ithaca College, and a Ph.D. from Brown University.
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Why Extreme Climate Physical Risks Are Closer Than You Might Think
07/06/2023
Why Extreme Climate Physical Risks Are Closer Than You Might Think
Hear from Rohan Hamden, Co-Founder and CEO of XDI, as we examine how climate-related impacts are exceeding our models and why the need for adaptation has never been greater. Despite our best efforts to measure and model the physical risks from climate change, the impacts continue to outpace our expectations. Consequently, we are left dangerously unprepared for extreme weather events both now and in the future. This highlights the critical need for robust adaptation measures, as we move into decades of unprecedented physical risk. The recent wildfires in California and flooding in Europe serve as stark reminders of the risks that extreme events pose. Although governments and financial institutions are gradually getting to grips with these issues, we’re still on the back-foot in the race against climate change, and swift action is needed to regain control over our transition to a resilient, net-zero society. That’s why in today’s episode, we’ll explore some of the major gaps in our global response to climate change, including: Why the physical risks from climate change continue to exceed our predictions; How adaptation planning is being undermined by conservative risk modelling and short-term thinking; and The dangers of normalizing extreme weather events, which are becoming all too frequent. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: XDI Homepage - XDI Article: Uninsurable Future - Intergovernmental Panel on Climate Change (IPCC) AR6 Synthesis Report – Tim Lenton on the GARP Climate Risk Podcast - Julie Pullen on the GARP Climate Risk Podcast - Speaker’s Bio Rohan Hamden, Co-Founder and CEO of XDI: Cross Dependency Initiative XDI, the Cross Dependency Initiative, is an international data and analytics organisation specialising in the modelling and analysis of asset level physical climate risk. In 2017, Rohan co-founded XDI with a vision of mainstreaming climate information into infrastructure and financial decision making. Rohan began his career as a fire fighter before working in the Australian government for nearly 15 years. During that time Rohan held a number of sustainability and climate related roles, culminating in the directorship of the Climate Adaptation Program for South Australia, where he designed and led the implementation of the State’s multi-award-winning climate change adaptation program. Rohan has advised various state and national governments on their climate adaptation programs in Australia, Canada, the US and the UK.
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The Future of the Carbon Markets Explained for Risk Professionals
06/15/2023
The Future of the Carbon Markets Explained for Risk Professionals
Hear from Mike Azlen, Founder and CEO of Carbon Cap Management, as we explore the ever-changing carbon markets and the future of emissions trading. The carbon markets can be very confusing. Between offsets, credits, permits, and allowances, it can be hard to understand the many ways emissions can be traded, as well as the different mechanisms for pricing them. Furthermore, as these markets and their participants mature, different strategies are emerging for how firms can transition to net-zero in a safe and responsible way. In today’s episode, we’ll explain the fundamentals of the compliance and voluntary carbon markets, but also explore some key emerging trends, including: · The proliferation of emissions trading schemes across the world; · How firms are navigating the challenges of the voluntary carbon market; and · The advent of carbon as a fully-fledged asset class. To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: Carbon Cap Management’s (CCM) World Carbon Fund - CCM’s research paper - Carbon as an Emerging Asset Class - CCM’s educational videos on carbon markets, carbon trading, and climate change - International Carbon Action Partnership (ICAP) ETS Map - Climeworks’ direct air capture technology - JP Morgan’s recent purchase of carbon removal credits - Speaker’s Bio Mike Azlen, Founder and CEO, Carbon Cap Management Mike is a senior investment professional with 25 years of industry experience. After a 15-year career spanning two Canadian banks and several alternative asset management companies, Mike founded Frontier Investment Management in 2005 and grew the business to profitability before selling the business to a public company in 2013 and completing his earnout in 2016. Mike formed Carbon Cap Management LLP in 2018 as an environmental asset manager focused on climate change and launched the World Carbon Fund in February 2020. The fund invests into multiple liquid and regulated carbon markets and aims to generate strong uncorrelated returns and a direct impact on carbon emissions. Carbon Cap’s mission is to raise awareness about climate change and to provide solutions directly related to the capping and reduction of carbon dioxide emissions. Mike holds a Sloan Masters Degree in Leadership and Strategy from London Business School and is a Chartered Alternative Investment Analyst (CAIA) and has completed the LSE’s Economics and Governance of Climate Change course. Mike is a regular speaker at investment conferences and has been a guest lecturer on the graduate degree programs at London Business School for more than 15 years.
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From Startup to Sustainability: Innovating For The Climate Emergency
05/25/2023
From Startup to Sustainability: Innovating For The Climate Emergency
Hear from Nicky Dee, Co-Founder of Carbon13, as we take a closer look at the climate startup ecosystem and how it’s changing the way we decarbonize. Many sectors, especially hard-to-abate ones such as steel and cement, are failing to align with a 1.5-degree world and still require fundamental change to become viable in a low carbon economy. Recognizing that there is no one-size-fits-all solution, we often turn to innovation as a way to find creative solutions to decarbonization challenges. Many entrepreneurs and innovators are turning their attention to climate and environmental issues, but given the scale and urgency of the challenges, more are always needed. Building on what we learnt about startups in the of this podcast, this discussion will dive into the world of venture builders which specialize in incubating climate startups, harnessing the creative power of entrepreneurs to tackle the climate emergency. We explore some key aspects of climate venture building, including: The process of creating a startup; How to build a team of the right people; and How these startups can help catalyse the transition to net-zero. For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: Carbon13 – C Cambridge Institute for Sustainability Leadership – Entrepreneur First – Kita – carbon insurance– Kita CEO Natalia Dorfman on the Climate Risk Podcast - Blue Methane – removing methane from water – Global Methane Pledge – Naturebound – measuring and monitoring biodiversity - Preoptima – real-time carbon analysis for construction projects – Biozeroc – carbon neutral construction materials – Speaker’s Bio Nicky Dee, Co-Founder and Chief Innovation and Sustainability Officer at Carbon13 Nicky has over 20 years’ experience engaging with startups and a variety of stakeholders to promote sustainability. She co-founded Carbon13 to build and invest in companies to address the climate emergency. Over the last two years, this has included 46 pre-seed investments in cutting-edge net zero startups, including Kita, who’s CEO Natalia Dorfman featured in the of this podcast. Nicky has pioneered a range of activities including innovation prizes, low carbon investments, corporate engagement mechanisms and startup ecosystems. She has a PhD from the University of Cambridge, and is a Senior Associate with the Cambridge Institute for Sustainability Leadership.
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Powerful Risk Management: Insurance Foundations for High-Integrity Carbon Markets
05/04/2023
Powerful Risk Management: Insurance Foundations for High-Integrity Carbon Markets
Hear from Natalia Dorfman, CEO & Co-Founder of Kita, as we explore the potential role of insurance in boosting the integrity of the voluntary carbon market. The voluntary carbon market will likely be an important tool in the transition to net-zero. Even if the world stopped emitting today, enormous amounts of greenhouse gas would still need to be removed from the atmosphere to limit warming to 1.5oC, which can only be achieved by carbon removal at scale. However, in its current state, the voluntary carbon market is both too small and too risky. To meet this challenge, it needs to grow to the size of the oil and gas industry by 2050, and significantly improve the transparency and reliability of its carbon credits, which is currently deterring investment. This is where carbon insurance comes in. By protecting investors from the financial and reputational risks associated with carbon credits, this insurance may have a significant role to play in both scaling-up and de-risking the voluntary carbon market. We’ll investigate: The key barriers to investment facing the voluntary carbon market; The potential role for insurance in making this market more effective; And the benefits of a scaled-up and de-risked voluntary carbon market for fighting both climate change and biodiversity loss. We'll also showcase the role of start-ups in this space, as they bring fresh perspectives, innovative products, and a willingness to take on big challenges to the issue of climate change. For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: Kita - The Earthshot Prize - Carbon13 - Verra - Gold Standard - Speaker’s Bio Natalia Dorfman is the CEO and co-founder of Kita, a carbon insurance specialist. Kita’s purpose is accelerating investment in high quality carbon sequestration projects with insurance that reduces transaction risk and safeguards the performance of carbon purchases. Kita’s flagship insurance product is Carbon Purchase Protection Cover, protecting buyers of forward purchased carbon credits against under-delivery. In 2023, Kita was nominated for the Earthshot Prize in the category of Fix Our Climate. Prior to founding Kita, Natalia spent 15 years as a business development and strategy specialist within the legal sector, including leading the Climate Risk practice strategy as Global Head of New Business at Clyde & Co LLP. Her experience with large corporations on their climate change-related challenges inspired her to help accelerate positive change through entrepreneurship. She was named among the “Top 100 Female Entrepreneurs to Watch” by NatWest and the Telegraph in November 2022.
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Soil: An Invisible Crisis and Massive Climate Opportunity
04/13/2023
Soil: An Invisible Crisis and Massive Climate Opportunity
Hear from Professor Jo Handelsman on the threats and opportunities that arise from soil – a vitally important resource that many of us take for granted and yet is at significant risk. Humans depend on soil for 95% of global food production, yet it is eroding at unsustainable rates. Climate change is making this worse, for example as rainstorms are projected to become more frequent and intense with a warming planet. This poses severe risks to our ability to feed a growing population. Yet, soil is also the largest terrestrial repository for carbon, containing three times as much as the Earth’s atmosphere and four times as much as all plants combined, meaning that it has the potential to be a significant mitigant in the fight to stop to climate change. Given its critical importance to humanity, we wanted to use this episode to dive into the threats and opportunities that arise from soil. We’ll discuss: · Why and how soil is so vitally important for humanity; · The scale of the risks from soil erosion and what can be done to stop this; · And how the financial sector can respond to help address this ‘silent crisis’. For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: Wisconsin Institute for Discovery - White House Office of Science and Technology Policy - A World Without Soil by Jo Handelsman - GARP Climate Risk Podcast with Maggie Monast (Environmental Defense Fund) - Speaker’s Bio Dr Jo Handelsman is the Director of the Wisconsin Institute for Discovery at University of Wisconsin–Madison. She is also a Vilas Research Professor and a Howard Hughes Medical Institute Professor. Dr. Handelsman was appointed by President Barack Obama as the Associate Director for Science at the White House Office of Science and Technology Policy, where she served for three years until January 2017. She has been editor-in-chief of various academic journals and is the author of many books, including the co-author of the recently published book ‘A World Without Soil: the past, present and precarious future of the earth beneath our feet.’ She received the Presidential Award for Excellence in Science, Mathematics, and Engineering Mentoring from President Obama in 2011 and was inducted into the American Academy of Arts and Sciences in 2019.
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Embedding Climate Within Risk Management: A Practitioner’s Guide
03/28/2023
Embedding Climate Within Risk Management: A Practitioner’s Guide
Hear from Chris Howland and Lars Popken of Deutsche Bank, as we delve into the complexities of incorporating climate risk within financial institutions. Measuring and managing the risks from climate change is often a challenge for many financial institutions, partly due to a lack of consistent data and analytical tools. As a result, many are still in the early stages of integrating climate within their day-to-day business and risk management processes. Beyond this, many have made net-zero commitments, which adds another layer of complexity to this challenge. From their experience at Deutsche Bank, our guests will discuss the hurdles they’ve faced and share their expertise on how banks and other financial institutions can get to grips with climate risk. We'll cover a range of topics, including: Integrating climate into risk metrics and setting a climate risk appetite; Working with counterparties and preparing for a supervisory climate stress test; and The benefits of adopting a multidisciplinary approach to climate risk management. For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: Links from today’s discussion: Deutsche Bank’s 2022 Non-Financial Report - Summary of the European Central Bank (ECB) 2022 Climate Risk Stress Test - NGFS climate scenarios portal - IFRS 9 Financial Instruments - Speaker’s Bio(s) Chris Howland, Head of Enterprise Risk Portfolio Management and ESG, Deutsche Bank Chris has responsibility for portfolio risk strategies and appetite setting across multiple dimensions including sectoral and regional, the preparation of holistic risk reporting for senior management and emerging risk analysis and reviews. He is responsible for developing the Bank’s holistic ESG risk management frameworks, working in close coordination with other Risk and Business divisions, with a particular focus on the tools and methodologies for measuring, monitoring, and controlling climate risk. Prior to joining Deutsche Bank in 2008 Chris worked for the Bank of England. He holds an MSc in Economics and Finance from the University of York and an MA in English Literature from the University of Edinburgh. Lars Popken, Global Head of Risk Methodology, Deutsche Bank Lars focusses on model development activities which relate to Credit Risk Rating Methodologies, Interest Rate Risk in the Banking Book as well as Economic Capital and Stresstesting for DB Group. In the US, a specific focus area is CCAR for credit risk as well as pre-provisioning net revenues. Prior to (re)joining Deutsche Bank in 2009, Lars worked for two years at the strategic consultancy firm Oliver Wyman. Lars holds a PhD in mathematics from the University of Kaiserslautern, Germany.
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