Analysis finds focus on stress tests and modelling impact of most extreme scenarios leaves sector blind to real risks

The financial world is making the same mistakes regarding climate change as it did with the housing market in the lead-up to the 2008 global financial crisis, a new report warns.

Degrees of Risk – co-authored by Ian Dunlop, a former head of the Australian Coal Association – found that while regulators and the financial sector had begun to grapple with the risks posed by the climate crisis, they were not moving fast enough.

Instead, they were relying on modelling scenarios of 3C and 4C of global heating without properly factoring in how catastrophic they would be.

Continue reading…

%d bloggers like this: