Climate Risk in Africa
Are European governments turning to African energy producers? What is the effect of Russia’s illegal invasion of Ukraine on other parts of the world? Will this threaten Africa’s transition to renewable energy? Is there any way to put the brakes on climate risk? On December 12, 2022, the Climate Action Tracker group held a virtual event, where three experts on climate risk discussed how to accelerate the transition to renewable energy and enhance climate action in Africa, with a focus on climate governance. Fossil gas is not the answer To meet the 1.5°C target of the Paris Agreement, “the global […]
Drivers of Inflation
What is causing the current inflationary environment? How are financial risk managers (FRMs) coping with escalating prices and renewed demand? What are the best strategies for addressing unanticipated inflation—what should a risk manager recommend to hedge against inflation? These and related questions led to a recent survey by the Global Association of Risk Professionals (GARP). “In June 2022, we surveyed 350 FRMs and found that most respondents expected inflation to remain high over the next year, followed by a significant reduction in the next five years,” said William May, Senior VP, Global Head of Certifications and Educational Programs, GARP. The survey […]
Steering the Ship
“Board involvement is pivotal… It’s so much easier to get climate risk capability embedded,” said Jo Paisley, President of the Global Association of Risk Professionals (GARP). “Our survey found the vast majority of boards have oversight of climate-related risks and opportunities.” She was referring to the report titled Third Annual Global Survey of Climate Risk Management at Financial Firms available from the GARP website since September 2021. Paisley and two other panel members were part of the July 12, 2022, webinar to mark the publication of a joint report from GARP and the United Nations Environment Programme Finance Initiative (UNEP FI). […]
Tools to Fight Global Warming
Investors realize something must be done to mitigate global warming. The financial system needs reliable tools, or performance indicators, that can measure how well financial portfolios align with the Paris Agreement goals. But what, exactly, are these indicators? On April 26, 2022, two specialists described the technical side of measuring portfolio alignment with current efforts to combat climate change. The webinar was sponsored by the Global Association of Risk Professionals (GARP) and was moderated by Jo Paisley, President, GARP Risk Institute. The movement toward portfolio alignment tools (PAT) is an outgrowth from the 26th United Nations Climate Change conference, commonly referred to as COP […]
But What About Inflation?
Now that the worst of the Covid pandemic appears to be over for North America, inflation has kicked in and investors everywhere are on guard. Is the inflationary trend here for the long term? What, really, lies at the root of this particular instance of inflation? Moreover, what is the best hedge against inflation? On April 4, 2022, James Montier, a member of the Asset Allocation Committee of the CFA Society of Toronto, gave a one-hour webinar on “Hedging Inflationary Risk.” He is the author of three market-leading books: Behavioral Finance: Insights into Irrational Minds and Markets, Behavioral Investing: A […]
Climate Risk Assessment
Storms, floods, fires, drought: what are the potential hazards threatening the physical assets of different regions? Furthermore, how can we estimate the magnitude of physical risk of each of these under a climate change scenario? “We’ve built infrastructure for certain weather patterns,” said Rohan Hamden, “but now it no longer fits with the weather we are experiencing.” Hamden is the founder and CEO of XDI, the Cross-Dependency Initiative, a company focused on Cross Dependency Analytics to estimate the physical risk to assets of many kinds of hazards. He was invited to share his expertise in physical risk data, modeling, and […]
“Confront Their Reluctance”
“We believe women need to confront their reluctance to consider a leadership role and work actively to counter it with a more positive response.” This clarion call is issued by two top leaders in the academic and corporate world. Indira Samarasekera was the first woman president of the University of Alberta, and a director of Magna International, TC Energy, and Stelco. Martha Piper was the first woman president of the University of British Columbia, and a director of the Bank of Montreal, Shoppers Drug Mart, and TransAlta Corporation. Although neither was born in Canada, both are officers of the Order […]
COP 26: The End Game
“The first week is usually a disappointment,” said Catherine Brahic, environment editor at the Economist magazine, “but this [second] week, the attendees are pushing ahead the goals. Now we are in the end game.” On November 11, 2021, the Economist magazine sponsored a webinar featuring two panellists: an editor and a science writer. Before an audience of thousands, each gave a firsthand account of what they had been seeing while they attended the 26th United Nations Climate Change conference, commonly referred to as COP 26, in Glasgow, Scotland. “The drafts of the papers have come out—they look simple for starters,” Brahic said, […]
The Decisive Decade
Raging, uncontrollable forest fires. Prolonged heat domes, causing hundreds of deaths. Catastrophic storms. Flash floods. These are just a few of the effects of climate change being felt this year. Are the countries of the world acting quickly enough to prevent irreversible damage? Two months ahead of the upcoming COP26 negotiations in Glasgow, two editors from the magazine the Economist discussed their expectations of this crucial conference in a webinar on September 23, 2021, before an audience of hundreds. Oliver Morton, the Economist’s Briefings senior editor, and Catherine Brahic, Environment editor, discussed the recent findings of the latest Intergovernmental Panel on Climate […]
Update on the Jab
It’s a truism: bad health of the population, bad economy. What then is happening globally in the Covid-19 pandemic? When will things return to normal? The pandemic continues to rage in various parts of the world, affecting both developed and emerging markets. On July 7, 2021, The Economist, a magazine that has been running stories on vaccines and the Covid-19 pandemic each week, sponsored a webinar featuring an editor and correspondent on the pandemic beat. Natasha Lode, health policy editor at the Economist, highlighted some recent issues. She is also host of the Economist’s podcast The Jab, whose tagline reads, […]