From central banks to ratings agencies, to hedge funds, actors in the financial system are increasingly seeking out climate-related risk information to inform their investing, oversight, and advice. Some players seek out information on specific asset-level risks: What are the chances that this house will flood over the next 30 years? Other actors are looking for more macro-level estimates: What will the effect of climate change be on labor productivity, or GDP, in the year 2060?
This talk will survey some of the current practices and challenges in translating climate science to financial estimates. It will highlight some of the best practices and developing methodologies for giving financial actors the best information to support decision-making, with an emphasis on tools like scenario analysis, storylines, and fit-for-purpose models.