Tsinghua University Issues Report to Promote Climate Risk Analysis by Businesses
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20 April 2022 23:30 WIB
TEMPO.CO, Singapore - Tsinghua University's Center for Green Finance Research (CGFR) on Wednesday, April 20, launched a new report to urge corporates and financial institutions to embed climate risks in their decision-making processes.
Named Pricing Climate Risks in Asia, the report unpacks the different methodologies and approaches for climate risk analysis, examining the limitations of current practices and outlining areas of opportunity, according to a press release.
While existing tools are helpful, climate-related risk analysis is still in its infancy and methodologies are being constantly updated to allow for more granular analysis.
"Businesses cannot count on conventional analytical tools to measure climate risks given their characteristics of non-linearity and unprecedentedness and must be prepared to adopt the latest tools and methodologies from all sources available," said Sun Tianyin, deputy director of CGFR.
The report points out that actively managing environmental, social, and governance issues and participating in disclosure initiatives will result in lower systemic risks, which leads to higher investor confidence and can enhance a business' competitive advantage.
The report was unveiled at the Ecosperity Conversations session, held in partnership with the CleanEnviro Summit Singapore 2022.
Xinhua
