Blog posts

There is a quiet shift happening in climate risk analysis. For years, the focus was on getting organisations to recognise that physical climate risk exists. That battle has largely been won. Today, banks, insurers, asset managers and governments - even home buyers - all acknowledge that climate risk matters. But a new problem appears to be emerging: disclosure is replacing understanding and action.

Prioritising climate adaptation is not just an environmental imperative but a strategic economic decision.

This week, a triple A-rated federal government was forced to acknowledge the potential risks of climate change on the value of sovereign bonds as it settled a landmark case that alleged it had misled or deceived investors. The Federal Court judge involved said global warming would likely be “a huge drain on (government) resources.”

Dark matter outweighs visible matter roughly six to one. That makes the universe only slightly more mysterious to us than the biodiversity of our own planet – it’s been estimated that we have likely only encountered and named 20 percent of the species on Earth.

Take control: Expert knowledge in your hands. The XDI Climate Risk Hub provides world-leading physical climate risk analysis at your fingertips, so you can access the information you need, when you need it.

The much anticipated release last week of the final climate-related disclosure standard from the International Sustainability Standards Board (ISSB) marks the beginning of a new chapter in corporate disclosure of climate change risk.

“We’re steadily marching toward an uninsurable future, not just in California but throughout the United States,” former California insurance commissioner, to Vox, June 2023.

“India seems to be at the watermark of climate change – rather than single events, it is the increased frequency of extreme weather occurrences that is breaking the back of our capability to cope with natural disasters.” Reserve Bank of India, May 2023.

TCFD, ISSB, SEC, EFRAG. For companies navigating their climate risk environment, the initialisations can seem like a bewildering foreign language. What you have to assess, report and disclose, and when, differs depending on your jurisdiction, your size, your industry. So what’s the best approach?