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Climate Risk – Technical Bulletin

Type: publication | Published: October 2016

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Overview


This bulletin provides an overview of SASB’s approach to a sustainability issue that is both ubiquitous and differentiated—and thus presents unique risks and opportunities for investors.

SASB’s Technical Bulletin on Climate Risk is designed to help investors better understand, measure, and manage their exposure to climate-related risk. The research finds that climate change materially affects nearly every industry, but manifests differently from one industry to the next. Investors can’t simply diversify away from climate risk; instead they must focus on managing it—and on encouraging portfolio companies to manage it—in all its forms. As former Secretaries of the Treasury Robert Rubin and Hank Paulson state in the foreword, “If investors are to effectively evaluate climate risk, they need a far better understanding of granular, industry-specific climate impacts, with industry-specific standards by which to evaluate corporate performance on these issues. … This latest SASB bulletin is a good next step toward this goal, and offers for the first time a comprehensive guide to understand and measure the unique climate impacts across all industries of the economy.”

This guide reflects the provisional standards. SASB is in the process of creating an updated bulletin.