“To analyse scenarios, one needs to be specific and clear about the pathway to value from any risk to financial consequence…This pathway is different in different instances, industries and positions in any given value chain.”
In advance of speaking at this year’s Responsible Investment Forum, March 4th and 5th in New York City, Anthesis Executive Director Don Reed authored a new Anthesis whitepaper on climate risk in private investing.
The whitepaper outlines the landscape of climate change in private investing, explaining drivers, physical vs. transitional risk, and what good climate risk analysis looks like.
Among other things, the whitepaper discusses that the critical innovation in the TCFD guidance is the call for scenario analysis applied to the financial performance of the company under different scenarios for climate change.
Read the whitepaper to learn more about what constitutes good scenario analysis and how to get started.