FEEM Policy Seminar on “Carbon Risk in a Post-COP21 World: a Focus on Fossil Fuels Assets’ Exposure and on the Financial Sector’s Strategies”
12:30 - 14:00
The seminar will explore the concept of ‘carbon risk’, focusing both on the risks that carbon-intensive companies are exposed to (“operator carbon risk”) and on the risks that is passed on to lenders and investors with a stake in these companies (“carbon asset risk”). As for the former, a 2°C stress test should be done by operators at the level of portfolios as well as at the asset level, coupled with the disclosure of the assumptions and results of such evaluations. As for the carbon asset risk, the financial sector can play a significant role in reducing the negative consequences of climate change through a proactive attitude in its investment choices. A growing number of institutional investors are equipping themselves with tools for assessing the effects of climate change and integrating them into their medium and long-term strategies. The attitude of asset management in allocating capital at the international level will be assessed, through initiatives such as the Portfolio Decarbonization Coalition, aimed at reducing greenhouse gas emissions through de-carbonization of investment portfolios.