Contents

List of figures

List of tables

Preface

Acknowledgments

1  Climate change becomes a financial concern

2  Reporting frameworks

2.1 Development

2.2 Harmonization with Task Force on Climate-related Financial Disclosures recommendations

2.2.1 CDP climate change questionnaire

2.2.2 Global Reporting Initiative Sustainability Reporting Standards

2.2.3 Climate Disclosure Standards Board framework using Sustainability Accounting Standards Board standards

2.2.4 French Energy Transition Law

2.2.5 National Association of Insurance Commissioners Climate Risk Disclosure Survey

2.2.6 Comparing reporting frameworks

2.3 Emerging efforts

2.3.1 United States Securities and Exchange Commission requirements

2.3.2 Additional European disclosure requirements

2.3.3 Chinese disclosure requirements

3  Carbon footprint calculations

3.1 Quantifying emissions

3.1.1 Emissions scopes

3.1.2 Global warming potential

3.2 Aggregating emissions

3.3 Evaluating investments

4  Brown taxonomies

4.1 Carbon bubble hypothesis

4.2 Classifications

4.2.1 California pension funds

4.2.2 Climate Risk Carbon Initiative

4.2.3 Global Coal Exit List

4.2.4 Additional taxonomies

4.2.5 Comparing classifications

5  Green taxonomies

5.1 Chinese efforts

5.1.1 Guidance on Green Loans

5.1.2 Green Bond Endorsed Project Catalogue

5.2 Nonprofit efforts

5.2.1 Green Bond Principles

5.2.2 Climate Bonds Initiative

5.3 European Union efforts

5.3.1 European Union taxonomy

5.3.2 European Union Green Bond Standard

5.4 Comparing green classifications

5.5 Emerging efforts

6  Scenario analysis

6.1 Transition risks

6.1.1 Energy transition

6.1.2 Warming potential

6.1.3 Carbon price

6.1.4 Capex

6.1.5 Comparing tools

6.2 Physical risks

6.2.1 Generating ratings

6.2.2 Applying ratings

6.3 Comparing risks

7  Stress testing

7.1 Weather-related catastrophes

7.2 Metrics

7.2.1 Overview

7.2.2 Bank of England

7.2.3 Chinese efforts

7.2.4 California Climate Assessment

7.2.5 Emerging efforts

8  A comprehensive strategy requires analytical tools

Appendix A – Glossary of terms

Appendix B – Timeline

Index