Physical Risk & Resilience Working Group

The standing physical risk working group has been retired, but we are forming ad-hoc member-driven groups to work on specific projects. As well, each of our workstreams include ‘physical risk’ projects in their agendas.

Here are the highlights if what IGCC did on physical risk in 2023:

  • IGCC’s strategy to accelerate the flow of capital into climate adaptation and resilience, “Road to Resilience” was launched at IGCC’s Annual Summit by the Assistant Minister for Climate Change and Energy, Senator Jenny McAllister. The accompanying report provides four key areas of work for investors and our broader ecosystem to manage physical risks associated with climate change, address policy barriers, and facilitate investment in adaptation and resilience.
  • IGCC contributed to shaping Australia’s National Climate Risk Assessment, with a focus on the financial implications of climate’s physical risks, helping ensure the government’s systemic risk mapping process can better guide policy towards a climate-resilient economy.

Chair

Kate Simmonds
Physical Risk Advisor, IGCC

Physical Risk and Resilience Strategy for Institutional Investors

The Investor Group on Climate Change is currently in the process of developing a company-wide strategy for physical risk with three primary objectives:

Credibly assessing climate change’s direct and systemic physical risks

Providing information on the physical risks of climate change that is clear, accurate, easily accessible and decision-useful.

Implementing equitable policy to build resilience and help communities adapt

Ensuring governments plan resilience and adaptation measures to the systemic physical risks in an equitable and investable manner.

Aligning capital flows to adaptation and resilience goals

Enabling investors to have the policy certainty they need to deploy capital towards effective adaptation and resilience measures.

Relevant News, Events and Resources

Activating Private Investment in Adaptation

Report | Kate Simmonds, Fergus Pitt, Stephen Catchpole, Olivia Kember, Bronte Wild | November 2024

Turning capital flight risk into the next multibillion opportunity

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Submission: National Adaptation Plan to manage physical risks for economy

Submission | Kate Simmonds | 17 April 2024

The first National Adaptation Plan provides is an important opportunity to do this and should consider:
  1. Including a co-developed private finance strategy and plan.
  2. Aligning adaptation across government climate change activities.
  3. Facilitating public-private partnerships and developing frameworks to manage complex adaptation challenges.
  4. Developing and co-funding case studies for best practice private and public-private financing of adaptation and resilience.

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Submission: National Adaptation Plan to manage physical risks for economy

17 April 2024

For institutional investors, adaptation is both a systemic risk and an opportunity. However, for private investment to be directed towards adaptation, there are significant barriers that must be addressed.