The finance sector should capture the full range of climate change risks
Climate risk assessments used by the financial sector are often based on empirical data from recent decades that do not span the full range of possible futures. We argue that the financial sector needs to embrace risk analysis for all plausible scenarios, not just for median outcomes.
Authors
- Luke Kemp (ORCID: https://orcid.org/0000-0002-7447-4335)
- David A. Stainforth (ORCID: https://orcid.org/0000-0001-6476-733X)
- Jesse F. Abrams (ORCID: https://orcid.org/0000-0003-0411-8519)
- Erica Thompson (ORCID: https://orcid.org/0000-0003-3750-8388)
- Ajay Gambhir (ORCID: https://orcid.org/0000-0002-5079-4537)
Institutions
- University of Exeter (GB)
- University of Cambridge (GB)
- United Nations Foundation (US)
- University College London (GB)
- Imperial College London (GB)
- London School of Economics and Political Science (GB)
Publication Details
- Journal
- Communications Earth & Environment
- Published
- 2026-10-29
- DOI
- https://doi.org/10.1038/s43247-026-04160-0
- Primary Topic
- Sustainable Finance and Green Bonds
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- V. Kann Rasmussen Foundation
- UK Research and Innovation
- ClimateWorks Foundation
- European Commission
- European Climate, Infrastructure and Environment Executive Agency
- HORIZON EUROPE Framework Programme