Introducing the RACC: A New Chart for Climate Risks

Global frameworks for climate action like the Paris Agreement and Sendai Framework fall short when it comes to addressing risk, resilience, and adaptation. To build resilience and adapt for climate impacts, organisations should look to create roadmaps that prioritise value, economic feasibility and implementation. We’ve helped develop roadmaps like this using predictive large-scale modelling and analysis with a probabilistic risk scoring framework. We also simplify all this into a Resilience and Adaptation Cost Curve (RACC), so every potential can ranked each potential initiative by the value of impact avoided, helping to narrow down the most affordable and highest-impact options. Find out what the RACC looks like below and what is needed to develop it. #ClimateRisk #PartnersinPerformance #EnergyTransition #ClimateImpact

A question every Board, CEO and COO should be asking: What is our action plan to ensure our operations remain future fit? Planning effectively for climate impact requires a roadmap that prioritises and balances value, economic feasibility and implementation. Such a roadmap enables any organisation to build the critical capabilities needed for resilience, adaptation and competitive advantage. #climaterisk #partnersinperformance #energytransition

While climate change mitigation remains an imperative, reports— including, among the most recent, the State of Climate Action 2025 by the World Resources Institute — find that progress toward 1.5°C-aligned targets has largely failed to materialize at the required pace and scale. As greenhouse gas concentrations continue to rise, the entire economy is called to consider how to safeguard itself from the increasing frequency and intensity of climate-related events. Financial institutions are central to this challenge, each with a distinct role to play. This newly published EY article provides an overview of how climate adaptation can be embedded across Swiss banks, insurers, and asset managers. I am pleased to have contributed to this discussion, which is more relevant than ever. #ClimateChange #Adaptation #SustainableFinance

Many financial institutions would strongly benefit from more structured approaches to integrate climate adaptation into their strategies, overlooking climate risks rooted in downstream activities. Engaging financed and insured stakeholders is essential for effective implementation. Read the full paper here: https://ow.ly/hHyT50XhpuR As climate change accelerates, institutions face growing exposure to physical risks that can impact asset values and disrupt operations. Embedding climate risk assessments into decision-making and implementing robust adaptation measures, they can strengthen long-term resilience, create strategic value, and enhance climate reporting. Christos Karydas, PhD | Cyril Motte | Tetiana Moens #EYSwitzerland #ShapeTheFutureWithConfidence #Sustainability

How can financial institutions proactively strengthen resilience to climate risk? That’s the question we explored in this EY Switzerland article, which underscores the importance of integrating climate adaptation into actionable strategies. We also highlight why engaging financed and insured stakeholders is essential to address downstream physical risks and build long‑term value. Special thanks to Mirko for incubating this question internally, and to Cyril, Christos and Tetiana for their insightful contributions. Read more: https://ow.ly/hHyT50XhpuR #EYSwitzerland #ShapeTheFutureWithConfidence #Sustainability

🌿 From risk to resilience. At #COP30 in Belém, Climate Bonds and Boston Consulting Group (BCG) launched the new Climate Bonds Resilience Taxonomy (CBRT) User Guide during the event “Financing Resilience: Investor Perspectives on the Next Wave of Climate Financing Opportunities.” The User Guide offers practical steps to apply the CBRT and integrate Adaptation & Resilience (A&R) into finance, helping issuers identify eligible projects, align with global frameworks, and build credible resilience strategies. With climate risks intensifying, the CBRT User Guide bridges ambition and action, turning climate science into investable opportunities. 🔗 Read the full blog: https://lnkd.in/d_C9QTsS

Credible green investment taxonomies play an important role in scaling adaptation and resilience financing by building a common language for investors. The Climate Bonds Initiative has developed the Climate Bonds Resilience Taxonomy to help investors make eligiblity decisions that ensure impact, but also avoid maladaptation or harm. BCG together with CBI have developed a User Guide that has been launched today at #COP30 in Bélem and helps investors use the taxonomy. For further reading, the guide can be explored here: https://lnkd.in/ePYjsa6z

Partnering with S&Z to turn climate risk into better decisions. With Repath's climate adaptation platform, S&Z will evaluate climate-related risks across their clients' assets, helping them to strengthen resilience in a changing climate. Backed by 750+ projects in 15 countries over 19 years, S&Z helps companies translate responsibility into measurable results, and we are proud to support them in delivering asset-level, science-based insights. Here's to building resilience that delivers both environmental and financial returns!

Thrilled to see this partnership with Repath go live! I've known the Repath team since their early days and have seen their impressive journey in turning climate data into actionable insights. Together, we’ve already worked on a climate risk project for one of the world’s largest container shipping companies — a great example of how data-driven adaptation creates tangible impact. Now, with Repath’s platform and S&Z’s more than 19 years of experience , we’re taking the next step: helping companies translate climate risk into better decisions and stronger resilience — environmentally and financially. Here’s to collaboration that delivers measurable sustainability! 🌍 #ClimateRisk #ClimateAdaptation #ClimateResilience #Sustainability #ClimateAction #NetZero #ESG

🌍 Key Implications: Climate Risk and the Cost of Sovereign Borrowing 💹 This slide highlights two important takeaways from our results: 1️⃣ Vulnerability to climate risk has a much stronger impact on the cost of sovereign borrowing than resilience does. The larger coefficients for vulnerability underline that exposure to the direct effects of climate change remains a critical driver of higher borrowing costs. 2️⃣ However, the negative and significant effect of climate resilience on borrowing costs offers hope. Strengthening resilience can help mitigate the impact of climate exposure, thereby reducing sovereign risk premiums over time. The takeaway is clear — while reducing vulnerability is essential, investing in resilience is an equally powerful strategy for promoting financial stability and sustainable development. 🌱📊 #ClimateFinance #SovereignRisk #ClimateChange #Resilience #Sustainability #PublicPolicy #EconomicDevelopment #GreenEconomy #ClimateAction