Measure the climate risk on the financial sustainability of companies and States over the coming decades.
This is becoming a growing concern of rating agencies and central banks.
But remains difficult to assess, underlines Luis de Guindos, on the blog of the European Central Bank (ECB).
"Because climate change is a slow process, which takes place over a long period, with great uncertainty about extreme weather events"
, writes the Vice-President of the ECB.
Read also: Christine Lagarde intends to act on the climate at the ECB
He distinguishes two categories of risk.
The first, physical, is linked to the frequency of natural disasters, floods and fires.
It can stop the production of a business and lead to bankruptcy.
The second, called transition, is induced by climate policies aimed at reducing emissions, typically an increase in the price of carbon.
"This will have a negative impact on certain energy-intensive sectors, such as the mining industry, cement factories
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