Presentations - Inaugural Conference with Financial Institutions

CLIMATE VS. ENVIRONMENTAL RISK

Climate Risk

E&S Risk

Although there are linkages, the concept of "climate risk" is distinct from environment, social and governance (ESG) risk, insofar as: • ESG risk approaches tend to analyze the project’s impact on the environment , communities • Climate risk approaches should analyze the environment/climate impacts on the project ’s viability. Many institutions continue to see climate change as an ESG issue, which fundamentally mischaracterizes the nature of the risks it poses. Climate risk is contextual, location specific, and dependent on the time horizon considered.

Temperature Patterns

Emissions

Droughts

Water Transportation

Polution

Precipitation

envioronment

Construction

Sea level rise of Financial Activity

Impact to Operation

Impact of the Project on the

Damage to habitats

Extreme Weather

Climate Risk is a Credit Risk