Automotive industry: Most challenging and direct financial impact comes from litigation risk. There are many high value class-action lawsuits, with the VW ‘diesel-gate’ scandal setting a clear precedent for OEM liability relating to GHG emissions. The level of balance sheet provisions and risk disclosure increases year-on-year, particularly in relation to ICE vehicles. But even for […]

Technological risks. The central bank (CB), and financial institutions under supervision need to update risk-monitoring systems, upgrade IT systems, adopt new modeling techniques to measure climate-related risks. Without these, the monitoring build-ups of time-varying and cross-sectional risks would be inadequate.  Economic risks and financial risks. Financial regulations to help shift lending and investment include higher capital […]

Risks of transition in the logistics sector in the main is balancing the financial and operational move from ICE to EV, ensuring that service is not compromised (i.e. mile range concerns) and the costs of installing a recharging infrastructure across the network. However the opportunity in the long term is efficient technology, reduction in running costs, reduction in […]

Shipping sector – most challenging aspect of this transition is how to manage an existing (expensive) asset base which is based on fossil fuels as new fuels are uncovered and start to emerge. At some point a majority of ships have new fuels and how does one manage the old fleet as most industry players […]

Transition risk is the most challenging. In any transformation efforts, definitely there is a lot of work need to be done and the most tough job as it is involved changes in policy and regulation, technological and institutional innovation or changing consumer behaviour. E.g when we converse about consumer behavior, mindset change is key. Opportunities […]