Managing climate risks: An imperative for asset managers

Aug 2020

Asset managers must act now to identify and manage climate risks in their investment portfolios as there is mounting empirical evidence that climate change has financial implications on asset valuation in global markets across various asset classes. The Task Force on Climate-related Financial disclosure (TCFD) framework, which is currently widely adopted by regulators, corporations and financial institutions as a method for measuring and disclosing climate-related risks, helps financial institutions to understand climate risks.

In this publication, we have identified the fundamental questions asset managers need to ask when assessing the adequacy of their climate risk management framework. Further, we have illustrated the impact of integrating climate risks in an asset manager’s risk management framework and discussed how PwC can support our clients in their climate risk management journey.