A significant challenge facing risk professionals is understanding the transition risks created by a fast-moving climate policy landscape and how this will impact specific sectors. Carbon-intensive sectors are already being affected by carbon-focused policies. Given the critical role these sectors will have to play in the transition, this is a trend that is only going to increase moving forward.
That’s why this webcast is exploring the data and methodologies being developed to analyze climate transition risk in the context of carbon-intensive sectors.
Join Ben Jones, Managing Consultant at CRU, as he takes us through a sector-specific case study of the transition risks facing carbon-intensive sectors. While Ben’s presentation will focus on the metals and mining sector, there will also be broader practical lessons on how to evaluate this important transition risk.
Find out more about the case study:
Climate change policy could decisively impact financial returns in the metals and mining sector. However, risks to both investors and lenders vary widely across the assets and firms in the sector. This reflects both the carbon intensity of production (impacting policy risk) and existing differences in their competitive positioning (affecting policy resilience). Carbon policies will not only add to production costs, but also tilt and re-sort competitive positioning in the market, redistributing – in some cases fundamentally – risk and reward in the industry. Drawing on CRU’s proprietary “carbon stress testing” tools, designed to support the de-risking of capital allocation to the mining and metals sectors, this webinar outlines methodologies and data for undertaking a detailed analysis of transition risks in the aluminum and steel industries. It finds extensive risks across both sectors, including among many highly competitive producers.
Ben leads CRU’s multi-commodity consulting team, where he has overseen a wide range of market-facing research and decision support spanning energy and metals markets. Prior to joining CRU, Ben led macroeconomic and energy demand analysis at BG Group, an oil and gas major. He previously worked as an economist and policymaker at the International Monetary Fund and UK Treasury in a variety of roles focusing on natural resources, public finance and environmental related issues. Ben has an MPhil in Economics from the University of Oxford and a PhD in Economics from the University of Birmingham. He has published widely on fiscal, energy, and commodity-related topics in leading international journals.
Jo Paisley is Co-President of the GARP Risk Institute (GRI), the thought leadership of GARP. Set up in early 2018, the Institute works across all risk disciplines, with Jo’s focus to date on climate risk management and scenario analysis, stress testing and operational resilience. Her career began at the Bank of England, where she worked in a variety of roles, across macroeconomics, statistics, supervision and risk. Her last role was as a Director of the Supervisory Risk Specialists Division within the Prudential Regulation Authority, where she was heavily involved in the design and execution of the UK’s first concurrent stress test in 2014. She left the Bank in 2015 and joined HSBC as their Global Head of Stress Testing. She has also worked as an independent stress testing consultant, advising firms on how to get the most value out of stress testing.
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