TRANSITIONING FROM RHETORIC TO ACTION: INTEGRATING PHYSICAL CLIMATE CHANGE AND EXTREME WEATHER RISK INTO INSTITUTIONAL INVESTING

ICCA-Integrating-Climate-Change-Risk-IG-final TRANSITIONING FROM RHETORIC TO ACTION: INTEGRATING PHYSICAL CLIMATE CHANGE AND EXTREME WEATHER RISK INTO INSTITUTIONAL INVESTING Due to escalating impacts of climate change and extreme weather events, investors Climate Risk Matrices (CRMs) must incorporate climate risk into portfolio management. [...] Costs of Extreme Weather: identify, assess, $ = $ $ $ $ continuity, and Optimal wind speed Cold temperatures (-10°C and manage Catastrophic Insurable Losses range would be 20km/h – 60 to -20°C) cause turbines to $1 insured $3-4 uninsured losses incurred by 2. [...] systems to reduce Key elements (a-d) reflect pillars variable wind speeds to failure and limit/reduce need mechanisms to reduce occurrence of shutdown. [...] Governance Urgent corrective maintenance is crucial to reduce failure of turbines – site maintenance workers should reside within commuting distance from the turbines Ice Storm Ontario The organization’s governance around (less than one day) and specialized technicians should be located within a day drive of the site.2.0 Quebec Wind & Rain climate-related risks and opportunities Key Questions and. [...] Strategy turbines during extreme cold temperature events? Excellent response : > 80% Poor response: < 80% Metrics and targets to CRMs represent the actual climate-related Key Questions and Responses to Determine Readiness to Mitigate Maintenance Risk identify, assess, and Poor response: >18 yrs 0.0 risks and opportunities that can inform Excellent response : 5-13 yrs (plan for replacement should m.