A host of top figures from business, finance, and academia led by former Bank of England Governor Mark Carney have announced a global Taskforce to accelerate the development of voluntary carbon markets across the private sector, ahead of anticipated surge in demand for CO2 offsets as the net zero transition gathers pace.
Spurious methods used in neoclassical economics have resulted in a gross underestimation of the potential economic harm caused by climate change. Correcting for such errors makes it feasible that the economic damages from climate change are at least an order of magnitude worse than forecast by economists, and may be so great as to threaten the survival of human civilization.
The notion of ‘climate risk’ is on the rise to the point that major financial and governmental institutions around the world are baking it into their policies and programs. Last week, for example, the U.K. government proposed mandatory climate risk-related governance by large pension plans, to be disclosed in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). The proposed scheme requires pension funds to analyze the implications of a range of temperature scenarios on their holdings and “to prompt strategic thinking about climate risks and opportunities.” It’s why Riskthinking.ai has designed a unique software platform utilizing machine learning and structured expert judgement for understanding and responding to climate risk.
California is burning, a Category 4 hurricane with winds of 150 mph just blasted into the Louisiana coast, and nearly 180,000 are reported dead from a viral outbreak that is just a harbinger of what one scientist calls “a new pandemic era” driven in part by our changing climate and wanton destruction of ecosystems. While there are positive indicators that people are waking up to the growing threat of climate change, a much greater pace and scale of climate action is needed to stave off its worst effects. Riskthinking.ai provides clients with forward-looking scenarios tools that render a deeper understanding of the true cost of climate risk, in order to drive timely decision-making.
Ice sheets in Greenland and Antarctica whose melting rates are rapidly increasing have raised the global sea level by 1.8cm since the 1990s, and are matching the Intergovernmental Panel on Climate Change’s worst-case climate warming scenarios. Understanding the likelihood and implications of climate scenarios like this one is vital for planning effective responses, and is at the heart of what we do at Riskthinking.ai.
Large-scale carbon dioxide removal (CDR), also referred to as “negative emissions”, is increasingly seen as a key component of climate change mitigation pathways that limit warming to 1.5C or 2C. While much of the climate literature tends to frame the various CDR approaches as novel and untested, in fact CDR has a longer and, in many ways, more tangible- and contested- history than this framing suggests, lessons from which are discussed in a recent paper in WIREs Climate Change.
The industry has broadly backed proposals to require the largest schemes to publish climate risk disclosures but raised concerns about the workload of implementation as well as how to standardise the methodology used. Riskthinking.ai is responding to this urgent need by supplying clients with a powerful set of forward-looking scenarios tools, built on a rigorously tested methodology, for understanding and disclosing financial risk related to climate change.
Australia’s greenhouse gas accounting underestimates national emissions by about 10%, largely due to a failure to properly recognise the impact of methane released during gas production, an analysis has found.
More than half of European pension schemes now consider climate risk – up from just 14% last year, according to a survey by Mercer. This trend is growing and underscores the value of Riskthinking.ai’s tools for assessing and responding to climate risk.
Up to now, estimates of greenhouse gas emissions from industries have relied mainly on paper-based calculations of what’s pouring out of tailpipes and smokestacks, based on the amount of energy consumed by people and businesses. But as satellite technology improves, researchers are starting to stress test the data – and the early results show leaky oil and gas industry infrastructure is responsible for far more of the methane in the atmosphere than previously thought. This will put pressure on energy companies – already targeted by climate activists and investors for their contribution to carbon dioxide emissions – to find and plug methane leaks.