{"id":25911,"date":"2017-03-27T15:10:22","date_gmt":"2017-03-27T19:10:22","guid":{"rendered":"https:\/\/www.bu.edu\/pardee\/?p=25911"},"modified":"2017-04-19T07:18:18","modified_gmt":"2017-04-19T11:18:18","slug":"a-climate-stress-test-of-the-financial-system-published-in-nature-climate-change","status":"publish","type":"post","link":"https:\/\/www.bu.edu\/pardee\/2017\/03\/27\/a-climate-stress-test-of-the-financial-system-published-in-nature-climate-change\/","title":{"rendered":"\u201cA climate stress-test of the financial system\u201d published in <em>Nature Climate Change<\/em>"},"content":{"rendered":"<p>Climate change brings new risks for financial investments, but the impact of climate policies on the financial system has remained unclear so far. Several organizations, including the G20 Financial Stability Board, have called for improving both data and methodologies to better disclose the climate risks faced by public and private investors in financial markets.<\/p>\n<p>An international team coordinated by the Department of Banking and Finance at the University of Zurich \u2013 and including <a href=\"https:\/\/www.bu.edu\/pardee\/community\/post-doctoral-associates\/irene-monasterolo\/\" target=\"_blank\">Irene Monasterolo<\/a> of the Frederick S. Pardee Center for the Study of the Longer-Range Future \u2013 developed a novel \u201cclimate stress-test\u201d methodology to assess climate risks of financial institutions\u2019 investments portfolios. <a href=\"http:\/\/www.nature.com\/nclimate\/journal\/vaop\/ncurrent\/full\/nclimate3255.html\" target=\"_blank\">The study, published today in the journal <em>Nature Climate Change<\/em>,<\/a> seeks to understand the degree to which financial actors\u2019 investments are exposed to climate risk. The authors analyze the impact of green (or brown) investment strategies and find that investors\u2019 portfolios in equity holdings bear large exposures to climate-policy-relevant sectors, and that pension funds are particularly affected.<\/p>\n<p>In the context of the policy discussion around the guidelines from the G20\u2019s Financial Stability Board Task Force on Climate-related Financial Disclosure, the results suggest that disclosure of climate-relevant financial information is necessary to improve risk estimations and create the right incentives for investors. However, because combined exposures are large, better disclosure may not be sufficient to mitigate risk. The timing and credibility of the implementation of climate policies matter: an early and stable policy framework would allow for a smoother adjustment of asset prices and for the emergence of net winners and losers in the transition to a low-carbon economy.<\/p>\n<p><a href=\"http:\/\/www.nature.com\/nclimate\/journal\/vaop\/ncurrent\/full\/nclimate3255.html\" target=\"_blank\">Web link to the paper<\/a><br \/>\n<a href=\"https:\/\/simpolproject.eu\/2016\/06\/10\/climate-stress-test\/\" target=\"_blank\">Web link to infographics<\/a><br \/>\nCorrespondence e-mail: stefano.battiston (at) uzh.ch<\/p>\n<p><strong><u>Publication authors:<\/u><\/strong><br \/>\nStefano Battiston (1), Antoine Mandel (2), Irene Monasterolo (3), Franziska Schu\u0308tze (4), and Gabriele Visentin (1)<\/p>\n<p><strong><u>Affiliations:<\/u><\/strong><br \/>\n(1) FINEXUS Center for Financial Networks and Sustainability, Department of Banking and Finance, University of Zurich, Andreasstr. 15, 8050 Zu\u0308rich, Switzerland.<br \/>\n(2) Universit\u00e9 Paris 1 Panth\u00e9on-Sorbonne, Centre d\u2019\u00e9conomie de la Sorbonne, Maison des sciences \u00e9conomiques, 106-112 Boulevard de l\u2019h\u00f4pital, 75647 Paris Cedex 13, France.<br \/>\n(3) Frederick S. Pardee Center for the Study of the Longer-Range Future, Boston University, 67 Bay State Road, Boston, Massachusetts 02215, USA.<br \/>\n(4) Global Climate Forum, Neue Promenade 6, 10178 Berlin, Germany.<\/p>\n<p><strong><u>Funding:<\/u><\/strong><br \/>\nThe work was funded by the EU grants FET Project SIMPOL nr. 610704, FET project DOLFINS nr 640772.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Climate change brings new risks for financial investments, but the impact of climate policies on the financial system has remained unclear so far. Several organizations, including the G20 Financial Stability Board, have called for improving both data and methodologies to better disclose the climate risks faced by public and private investors in financial markets. An [&hellip;]<\/p>\n","protected":false},"author":10270,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5426,60],"tags":[5363,5419,5388,5390],"_links":{"self":[{"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/posts\/25911"}],"collection":[{"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/users\/10270"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/comments?post=25911"}],"version-history":[{"count":8,"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/posts\/25911\/revisions"}],"predecessor-version":[{"id":26006,"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/posts\/25911\/revisions\/26006"}],"wp:attachment":[{"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/media?parent=25911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/categories?post=25911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bu.edu\/pardee\/wp-json\/wp\/v2\/tags?post=25911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}