Alignment to Climate Regulatory Scenarios: A Case Study of Australian Companies

Research Paper
September 24, 2018
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While technological progress will likely play a critical role in catalyzing a transition to a low carbon economy, regulation has historically been a key lever in efforts to reduce global carbon emissions to combat climate change. Within the financial sector, climate change scenario analysis has begun to take a more prominent role in climate change risk management, after recommendations from the Financial Stability Board's (FSB) Task Force on Climate-related Financial Disclosure (TCFD) were published in July 2017. Institutional investors are thus increasingly looking for ways to measure their portfolios' exposure to various climate scenarios. This paper contributes to that effort by providing a concise framework for viewing how companies are positioned under various climate change regulatory scenarios.

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