Climate Risk & Scenario Analysis

The course provides an overview of the scenario analysis and climate risk modeling process for corporate issuers and government entities. There is a brief introduction to the climate models utilized by the IPCC, both global and regional. There is a description of the scenario generation and analysis process, with linkages to benchmark scenarios outlined by international bodies. This is followed by a review of the linkages between climate models and socio-economic variables in the form of integrated assessment models, Ricardian models and economic input-output analysis. There is one module on the information systems needed to ensure good adaptation and a review of best practices and guidelines for climate risk management strategies. Integrated examples of climate risk and opportunities for specific issuers are discussed in the last 2 classes. The problem sets and exercises are designed to provide practice in applying high-level guidelines and climate damage relationships to the strategies and operations of specific countries, industries and companies.