Climate and Nature Financial Risk
The Global Risks Alliance (GRA)
Topics at Climate and Nature Financial Risk: the pages in this section are listed below, each with its own scope and status.
GRA · In development · service level R0
The Climate and Nature Financial Risk topics are the eight subject dossiers of its field, among them physical climate risk, transition risk and nature dependencies. Each dossier sets out how the risk develops, what is measured and in which units, the public sources and their licences, the methods, who decides and the limits of the evidence.
GRA is a nonprofit business league for the financial services industry. It does not lend, underwrite, rate, invest, advise on or arrange transactions, and readiness work is not approval.
Topic pages in Climate and Nature Financial Risk share one structure: mechanisms, indicators, sources, methods, decisions and limits, written for climate risk managers in banks and insurers and disclosure and sustainability reporting teams.
Each term as this page uses it. Where a standard-setting body defines the term, the wording follows that body.
| Term | Definition |
|---|---|
| Acute physical risk | Risk from event-driven hazards such as floods, cyclones and wildfires. |
| Stranded asset | An asset that loses value before the end of its expected life because of transition changes. |
| Ecosystem service | A benefit people and businesses obtain from ecosystems, such as pollination or water purification. |
| Orderly transition | A scenario in which climate policy is introduced early and becomes gradually more stringent. |
| Insurance availability | Whether cover for a risk can be bought in the market at all. |
The bodies and documents this page is read against. Status and editions change; each link goes to the issuing body.
Direct and indirect asset exposures.
TopicPolicy, technology and business-model change.
TopicEcosystem services, degradation and economics.
TopicHorizon, assumptions and limitations.
TopicDistinct financial-sector transmission.
TopicSource quality and comparability.
TopicRisk reduction and protection gaps.
TopicGeolocation, uncertainty and aggregation.
The current service level is R0: information and enquiries. An enquiry receives a reference and names the next step; applications, payments, compute allocations and registrations open only when their team, terms and review capacity exist.