IDEAS home Printed from https://ideas.repec.org/a/nat/natcli/v11y2021i2d10.1038_s41558-020-00984-6.html
   My bibliography  Save this article

Business risk and the emergence of climate analytics

Author

Listed:
  • Tanya Fiedler

    (Discipline of Accounting, University of Sydney Business School, University of Sydney)

  • Andy J. Pitman

    (ARC Centre of Excellences for Climate Extremes and Climate Change Research Centre, UNSW)

  • Kate Mackenzie
  • Nick Wood

    (Climate Policy Research)

  • Christian Jakob

    (ARC Centre of Excellences for Climate Extremes and School of Earth, Atmosphere, and Environment, Monash University)

  • Sarah E. Perkins-Kirkpatrick

    (ARC Centre of Excellences for Climate Extremes and Climate Change Research Centre, UNSW)

Abstract

Emerging awareness of climate-related financial risk has prompted efforts to integrate knowledge of climate change risks into financial decision-making and disclosures. Assessment of future climate risk requires knowledge of how the climate will change on time and spatial scales that vary between business entities. The rules by which climate science can be used appropriately to inform assessments of how climate change will impact financial risk have not yet been developed. In this Perspective, we summarize the demands by the business and finance community for reliable climate information, and the potential and limitations of such information in the context of what climate models can and cannot currently provide.

Suggested Citation

  • Tanya Fiedler & Andy J. Pitman & Kate Mackenzie & Nick Wood & Christian Jakob & Sarah E. Perkins-Kirkpatrick, 2021. "Business risk and the emergence of climate analytics," Nature Climate Change, Nature, vol. 11(2), pages 87-94, February.
    • Handle: RePEc:nat:natcli:v:11:y:2021:i:2:d:10.1038_s41558-020-00984-6
    DOI: 10.1038/s41558-020-00984-6
    as

    Download full text from publisher

    File URL: https://www.nature.com/articles/s41558-020-00984-6
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1038/s41558-020-00984-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kirtika Deo & Abhnil Amtesh Prasad, 2022. "Exploring Climate Change Adaptation, Mitigation and Marketing Connections," Sustainability, MDPI, vol. 14(7), pages 1-21, April.
    2. Yang, Xin & Wei, Luohan & Deng, Rantian & Cao, Jie & Huang, Chuangxia, 2023. "Can climate-related risks increase audit fees?–Evidence from China," Finance Research Letters, Elsevier, vol. 57(C).
    3. Mercy Berman DeMenno, 2023. "Environmental sustainability and financial stability: can macroprudential stress testing measure and mitigate climate-related systemic financial risk?," Journal of Banking Regulation, Palgrave Macmillan, vol. 24(4), pages 445-473, December.
    4. Zhang, Dongna & Dai, Xingyu & Wang, Qunwei & Lau, Chi Keung Marco, 2023. "Impacts of weather conditions on the US commodity markets systemic interdependence across multi-timescales," Energy Economics, Elsevier, vol. 123(C).
    5. Patrycja Klusak & Matthew Agarwala & Matt Burke & Moritz Kraemer & Kamiar Mohaddes, 2023. "Rising Temperatures, Falling Ratings: The Effect of Climate Change on Sovereign Creditworthiness," Management Science, INFORMS, vol. 69(12), pages 7468-7491, December.
    6. Stephan R. Sain, 2023. "Data science and climate risk analytics," Environmetrics, John Wiley & Sons, Ltd., vol. 34(2), March.
    7. Dunbar, Kwamie & Treku, Daniel & Sarnie, Robert & Hoover, Jack, 2023. "What does ESG risk premia tell us about mutual fund sustainability levels: A difference-in-differences analysis," Finance Research Letters, Elsevier, vol. 57(C).
    8. Xia Li & Kevin P. Gallagher, 2022. "Assessing the climate change exposure of foreign direct investment," Nature Communications, Nature, vol. 13(1), pages 1-9, December.
    9. Alberto Arribas & Ross Fairgrieve & Trevor Dhu & Juliet Bell & Rosalind Cornforth & Geoff Gooley & Chris J. Hilson & Amy Luers & Theodore G. Shepherd & Roger Street & Nick Wood, 2022. "Climate risk assessment needs urgent improvement," Nature Communications, Nature, vol. 13(1), pages 1-4, December.
    10. Nicholas J. Leach & Christopher D. Roberts & Matthias Aengenheyster & Daniel Heathcote & Dann M. Mitchell & Vikki Thompson & Tim Palmer & Antje Weisheimer & Myles R. Allen, 2024. "Heatwave attribution based on reliable operational weather forecasts," Nature Communications, Nature, vol. 15(1), pages 1-11, December.
    11. Chia‐Chi Lee & Shih‐Yun Kuo & Huang‐Hsiung Hsu & Tung‐Li Mo & En‐Yu Chang & Kuan‐Chun Huang, 2023. "How does the research community contribute to corporate climate‐related risk disclosures? The gap between ideals and reality," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 927-940, March.
    12. Luke J. Harrington & Carl-Friedrich Schleussner & Friederike E. L. Otto, 2021. "Quantifying uncertainty in aggregated climate change risk assessments," Nature Communications, Nature, vol. 12(1), pages 1-10, December.
    13. Nguyen, Quyen & Diaz-Rainey, Ivan & Kuruppuarachchi, Duminda, 2023. "In search of climate distress risk," International Review of Financial Analysis, Elsevier, vol. 85(C).
    14. Nora M C Pankratz & Christoph M Schiller, 2024. "Climate Change and Adaptation in Global Supply-Chain Networks," The Review of Financial Studies, Society for Financial Studies, vol. 37(6), pages 1729-1777.
    15. Frances C. Moore, 2024. "Learning, Catastrophic Risk, and Ambiguity in the Climate Change Era," NBER Chapters, in: Environmental and Energy Policy and the Economy, volume 6, National Bureau of Economic Research, Inc.
    16. Robert Wilby & Xianfu Lu, 2022. "Tailoring climate information and services for adaptation actors with diverse capabilities," Climatic Change, Springer, vol. 174(3), pages 1-13, October.
    17. Xueke Li & Scott R. Stephenson & Amanda H. Lynch & Michael A. Goldstein & David A. Bailey & Siri Veland, 2021. "Arctic shipping guidance from the CMIP6 ensemble on operational and infrastructural timescales," Climatic Change, Springer, vol. 167(1), pages 1-19, July.
    18. Marina Baldissera Pacchetti & Suraje Dessai & David A. Stainforth & Seamus Bradley, 2021. "Assessing the quality of state-of-the-art regional climate information: the case of the UK Climate Projections 2018," Climatic Change, Springer, vol. 168(1), pages 1-25, September.
    19. Hain, Linda I. & Kölbel, Julian F. & Leippold, Markus, 2022. "Let’s get physical: Comparing metrics of physical climate risk," Finance Research Letters, Elsevier, vol. 46(PB).
    20. Giacomo Bressan & Anja Đuranović & Irene Monasterolo & Stefano Battiston, 2024. "Asset-level assessment of climate physical risk matters for adaptation finance," Nature Communications, Nature, vol. 15(1), pages 1-13, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nat:natcli:v:11:y:2021:i:2:d:10.1038_s41558-020-00984-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.nature.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.