Risk

Irene Monasterolo discussed climate physical risks at Oxford Sustainable Finance Summit 2022

Irene Monasterolo, Professor of Climate Finance, EDHEC Business School, was invited to speak on the theme of climate physical risks at Oxford Sustainable Finance Summit 2022 on 21 July 2022. The…
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6 Sep 2022
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Irene Monasterolo, Professor of Climate Finance, EDHEC Business School, was invited to speak on the theme of climate physical risks at Oxford Sustainable Finance Summit 2022 on 21 July 2022.

The summit brought together leading researchers from across Oxford with practitioners, policymakers, regulators, and civil society organizations to examine and reflect on the latest developments and trends in sustainable finance and investment. An occasion to also showcase and critically evaluate emerging best practices across finance sub-sectors, asset classes, and sustainability themes.

Irene Monasterolo participated as a panelist in the session entitled "Climate-related physical risks", together with Dr Olivier Mahul, Practice Manager, Crisis and Disaster Risk Finance (World Bank), Adityadeb Mukherjee, Head of ESG, (Lloyds Banking Group), and Tom Perkins, Catastrophe & Climate Risk Analyst (Bank of England). The session was chaired by Dr Nicola Ranger, Deputy Director, UK Centre for Greening Finance & Investment, Head of Sustainable Finance Research for Development, Oxford Sustainable Finance Group (University of Oxford).

Physical risk is often seen as more remote than transition risk, particularly for wealthier countries. But COVID has taught us that risks can interact in complex ways and cascade globally. This session drew upon the evidence on systemic risks related to physical climate shocks, including compound risks and cascading global physical risks. In this session, experts showcased the latest science in this area and identified potential hot spots of risk. 

During her presentation, Irene Monasterolo presented the recent results from her first analysis on asset-level climate physical risk assessment and implications for cascading financial losses and addressed the following issues:

  • the importance of including the asset level dimension in the assessment of climate physical risks for finance
  • their approach to fill the methodological gap and results from the application to Mexico
  • data and financial valuation challenges and opportunities 

 

 

Watch the replay

 

Learn more about the recent research by Professor Monasterolo on “Asset-level climate physical risk assessment and cascading financial losses".