Texas prides itself on being different. Yet it is in the grip of a winter storm that typifies the Snowmageddon-size problems facing energy in America. Although nobody can be sure if this particular freeze is a sign of climate change, the growing frequency of extreme weather across the country is. Texan infrastructure has buckled. The problem is not, as some argue, that Texas has too many renewables. Gas-fired plants and a nuclear reactor were hit, as well as wind turbines. Worse, Texas had too little capacity and its poorly connected grid was unable to import power from elsewhere (see article). Texas shows that America needs both a cleaner grid and a more reliable one.
The black swan year of 2020 has brought many challenges for the shipping industry, including the ongoing crew change crisis, but it has also shown how the sector can be resilient in the face of adversity and pressure.
The world is getting warmer, but the global response has “remained muted” despite efforts like the Paris Climate Agreement — and millions of lives are at risk as a result. This according to a report published Wednesday by The Lancet, a leading peer-reviewed medical journal.
We couldn’t agree more that it’s time for companies to go “all in” on climate – to base every major decision on the climate bottom line as well as the financial bottom line. This report offers high-level guidance on climate policy for key stakeholders who want to drive change, from CEOs to board directors to concerned employees, and aligns with Riskthinking’s approach to assessing and responding to climate risk.
S&P Global Market Intelligence and Oliver Wyman are collaborating to create a climate-linked credit analytics model suite. This new risk and scenario analysis capability will provide credit risk assessments of companies under a range of climate scenarios.
We agree with Mark Carney, the former Bank of Canada and Bank of England governor, that transitioning the global economy to clean energy will take a concerted effort by the international community. Broad uptake of a global standard for climate related-financial disclosure is needed.
Reformation of our financial systems to accurately price and value natural assets is essential for a sustainable future. Disclosure of climate-related financial risks is one important measure that will move business in the right direction.