About this webinar
Mandatory climate disclosure now asks investors to understand how material physical risk is in their portfolios. In this webinar, George Droulias, Head of Sales and Partnerships, is joined by Emmi climate scientists Dr Ben McNeil and Dr Nicholas Pittman to share what our analysis of real portfolios shows.
The session compares two complementary models. Our geospatial model maps acute hazards at specific asset locations across climate scenarios. Our market-impact model measures how companies in each region and sector have performed after past acute events, so it covers holdings without asset location data.
Three findings
Hydro in the bushfire zone. Across around 230 Australian generation assets, hydro showed the largest average increase in wildfire exposure to 2050. Hydro needs elevation and mountain catchments, which are often in fire-prone forest. Location, not generation type, drives physical risk.
Supply chains move share prices. When Hurricane Harvey shut down more than a third of US chemical production in 2017, companies with few assets in the flood zone still took a financial hit through their suppliers. Newell Brands is the example discussed.
Global power exposure sits in Asia. Across 6,774 power assets in 128 countries, the highest exposures were in Taiwan, the Philippines, Japan and southern China, where dense power infrastructure meets Western Pacific cyclone risk. Expected losses roughly double by 2050 under a middle-of-the-road scenario.
What it means for disclosure
The session closes on what reporting entities need to produce under Australian, New Zealand and European rules. It also covers how the same data can answer investment questions beyond compliance, such as where transition and physical risk compound.
Read the case studies
Australian power sector wildfire risk: A Snowy Hydro case study
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