MAVERIC

Purpose and goal:

The aim is to better understand climate related risks, predict revenue and capital appreciation but also to adhere to disclosure regulations. The questions are: 1. How will climate change impact material assets? 2. What physical and transition climate risks should different actors incorporate on their risk

register? 3. How can valuation methods incorporate cascading and simultaneous climate risks?

4. What is the potential value of the portfolios of different actors were climate risk to be incorporated in the valuation method? Expected results and effects:

The main expected output is an evidence-based climate risk evaluation method for improved decisions and assessment of the value of material assets, incorporating actors’ heterogeneity but also cascading climate related impacts, with results written up in 7 publications. Four are intended for high profile, high impact financial market research journals.

Approach and implementation: This project engages 2 research organisations and 14 consortium partners

(financial institutions; asset owners; insurance companies; and government agencies). It consists of 5 work packages. WP1 focuses on understanding current practices related to material asset valuation, risk management and reporting initiatives and requirements.

WP2 looks at estimating the probability of climate change over time and its impact on material assets. WP3 entails a practical case study of how climate risk would impact a portfolio. WP4 and WP5 are about dissemination and management activities.