Advanced Analytical Methods for Climate Risk and ESG Risk Management

Climate change is one of the most recognized issues facing society today. International organizations, the scientific community, regulators, and industry groups have been conducting climate risk studies for many years. As the impact of climate change and CO2 emissions gain more visibility globally, there is an increased interest in understanding how the industry landscape will be reshaped in response to the changing physical, economic, and political environment. Advanced Analytical Methods for Climate Risk and ESG Risk Management: A Concrete Approach to Modeling meets that interest, offering risk managers and regulators a comprehensive background on climate change, as well as a concrete method for modelling and managing the resultant risk. Uniquely, this book provides readers with a thorough introduction to the concepts, scientific principles, historical events, and current political landscape pertinent to climate change and ESG concerns. In order to effectively manage climate risk professionals must understand both the principles of risk modelling and the real-world scenarios to which their models must refer. Author Jorge Sobehart, an expert in advanced quantitative modelling who has focused on issues of energy, climate, social impact, and financial risk, delivers a risk-centric analysis of how the planet got to this point, what might happen in the future, and what is being done about it on a regulatory level and within industry. At its core, Advanced Analytical Methods for Climate Risk and ESG Risk Management describes a fresh perspective on advanced analytical methods, risk management, and their applications within the field of climate and ESG. By employing this book's three-pillar approach to stress testing portfolios, risk managers are assured of approaching the pressing question of climate risk with the most complete possible understanding of risk scenarios.