Deutsche Bank map physical climate investment risks

Deutsche Bank Deploys Tool to Map Climate Investment Risks: ‘Deutsche Bank AG’s asset-management unit is using a detailed map to determine where natural disasters spawned by climate change may pose the greatest risks to its investment portfolios.’ The firm ‘is using data from Four Twenty Seven, a California climate advisory firm that mapped the locations of more than 1 million corporate, manufacturing and retail sites globally to gauge companies’ exposure to hazards such as hurricanes, heat waves, floods, droughts and wildfires.’

“We were feeling that all of the assets and energy going into carbon footprinting were not addressing the immediate risks to us,” said Michael Lewis, head of ESG thematic research at Deutsche Asset Management, which oversees 711 billion euros ($824.5 billion). Lewis said he hopes the bank can use the maps to encourage more disclosure from companies on asset and supply-chain risks tied to climate change. Earlier this year, the Financial Stability Board’s Task Force on Climate-related Financial Disclosure urged financial firms to start disclosing such risks.’ (Bloomberg, 8 Nov) See Deutsche AM press note, and 32 page report here (pdf).

TCFD & Bank of England climate scenarios event: Business Green look in detail at ‘Climate risk planning: The six things your business needs to know’ in a report from the ‘TCFD and Bank of England’s joint conference on climate scenarios, financial risk and strategic planning in London’. Although the TCFD guidelines have ‘already picked up strong support from a number of global banks and corporates, the race is now on to take the message to a wider corporate audience and to keep highlighting how planning for a hotter yet technologically-cleaner planet is critical for better managing investment risks.’ Also in Responsible Investor.

To receive The Kenrick Chronicle by email every few weeks sign up at www.financedialogue.org/#4