{"id":66933,"date":"2017-11-15T00:06:15","date_gmt":"2017-11-14T23:06:15","guid":{"rendered":"http:\/\/beta.next-finance.net\/news\/deutsche-asset-management-integrates-corporate-scores-on-exposure-to-catastrophic-climate-events-in-industry-first\/"},"modified":"2017-11-15T00:06:15","modified_gmt":"2017-11-14T23:06:15","slug":"deutsche-asset-management-integrates-corporate-scores-on-exposure-to-catastrophic-climate-events-in-industry-first","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/deutsche-asset-management-integrates-corporate-scores-on-exposure-to-catastrophic-climate-events-in-industry-first\/","title":{"rendered":"Deutsche Asset Management integrates corporate scores on exposure to catastrophic climate events in industry first"},"content":{"rendered":"<p>Four Twenty Seven has mapped the physical locations of more than one million<br \/>\ncorporate facilities globally and uses climate science models to assess the<br \/>\nlikelihood of them being affected by climate hazards such as heatwaves, floods<br \/>\nand cyclones. This means that exposure to catastrophic events for individual<br \/>\ncompanies can now be calculated.<\/p>\n<p>This is the first time the physical location of corporate facilities and their exposure<br \/>\nto climate-related events have been mapped for investment purposes. Deutsche<br \/>\nAsset Management will now be able to integrate a company\u2019s physical climate<br \/>\nrisk equity score within new investment products, and assess the implications of<br \/>\nclimate events for individual companies in its portfolios.<\/p>\n<p>The scoring methodology identifies and categorises the location, activity and<br \/>\nbusiness sensitivity of facilities or companies to climate hazards. Climate science<br \/>\nmodels are then applied to assess the geographical exposure to climate hazards.<br \/>\nThe business impact of these is measured from an operations, supply chain and<br \/>\nmarket risk perspective. <\/p>\n<p>The data can be analysed, for example, to look at how rising sea levels could<br \/>\naffect coastal and offshore oil and gas infrastructure, how floods could disrupt<br \/>\nsupply chains, or whether extreme heat affects labour productivity in the<br \/>\nagricultural and construction sectors.<\/p>\n<p><em>\u201cThe availability of this new data on physical climate risk is a major step forward<br \/>\nto addressing a serious and growing risk for investors. Climate risk is now centre<br \/>\nstage, however we believe the investment industry needs to champion the<br \/>\ndisclosure of annual and once-in-a-lifetime climate risks by companies. We have<br \/>\na duty to understand what more hurricanes or heatwaves mean for valuations<br \/>\nand investment returns,\u201d<\/em> said Nicolas Moreau, Head of Deutsche Asset<br \/>\nManagement.<\/p>\n<p>This new approach, and the physical climate threat to investment portfolios, is<br \/>\noutlined in a research paper by Four Twenty Seven and Deutsche AM that was<br \/>\nlaunched as the COP23 climate conference in Bonn gets underway. <\/p>\n<p>It tackles physical risk head on, giving credible insight into the vulnerability of<br \/>\ncorporate production and retail sites to climate change. Factors such as sea level<br \/>\nrise, droughts, flooding and cyclones pose an immediate and measurable threat<br \/>\nto investment portfolios. <\/p>\n<p>Whilst no location is immune from the risks of physical climate change, the<br \/>\nresearch paper highlights Asia as particularly vulnerable. Five out of six people<br \/>\noccupying the highest climate risk zones globally live in Asia, with 145 million<br \/>\npeople in China living on land threatened by rising seas.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A ground-breaking approach to climate risk management has been developed by<br \/>\nDeutsche Asset Management in partnership with California-based climate<br \/>\nintelligence advisory firm Four Twenty Seven.<\/p>\n","protected":false},"author":20,"featured_media":66931,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1655,1849,1826,1651,1706,1685],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/66933"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=66933"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/66933\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/66931"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=66933"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=66933"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=66933"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}