ClimINVEST – Towards tailored climate information for the finance sector – a co-production approach between scientists and investors

14:00 Wednesday 29 May

OC163

Room S13

 

Florian Gallo (France) 1; Violaine Lepousez (France) 1

1 - Carbone 4

Across the world, the effects of climate change are already visible, and all sectors of activities are being impacted. Extreme weather events such as storms and floods and chronic shifts in climate such as increasing temperature, or sea-level rise are threatening financial investments and activities. More importantly, the physical impacts of climate change are expected to worsen over the next few decades.

For these reasons, the Task Force on Climate-Related Financial Disclosures (TCFD), established by the Financial Stability Board, issued a set of recommendations for a better reporting in the financial sector to prepare for climate change-related risks. However, the investors lack the tools and expertise to quantify the impacts of physical climate risks on their assets and investments. Investors and scientists often do not speak the same language and might not share the same goals.

The ClimINVEST project involves climate researchers, climate finance specialists and practitioners (CICERO, Wageningen University, MŽtŽo France, I4CE, Carbone 4 and Climate Adaptation Services). It aims to enhance communication and capacity building between climate specialists and the financial sector. ClimINVEST brings scientists and investors together to develop tailored tools and indicators to translate the physical data into usable information on investment portfolios, through a co-production approach. A set of case studies are used to develop methodologies for specific sectors and locations.

Here we will describe this co-production approach and the framework for developing these tools, from climate variables to financial information. We will focus on the interaction with the users (assessment of needs, exchange of information) and the challenges and opportunities for finance and science to work together and share knowledge in an inter-disciplinary approach. This approach will be illustrated by some of the case studies in different sectors.