[tra:ce] Working Paper Series Launch No. 6: 'Climate-Related Risk Taking, Shaping and Shifting' скачать в хорошем качестве

[tra:ce] Working Paper Series Launch No. 6: 'Climate-Related Risk Taking, Shaping and Shifting'

European financial institutions face mixed signals on how to account for climaterelated and environmental risks that could prevent a disorderly stranding of assets. The literature has emphasised the financial industry’s inability to cope with the fundamental uncertainty inherent to climate change, but still lacks an analysis of its strategic behaviour in relation to stranded asset risks. Based on the analysis of 38 semi-structured interviews with financial institutions, foremost institutional investors and banks, we address this lacuna. We argue that financial actors primarily employ three strategy clusters to address stranded asset risks: (1) risk taking, (2) risk shaping, and (3) risk shifting. These strategies entail different financial practices and narratives that either imply marginal financially material action, that challenge the scope of stranded assets, or hedge against stranded asset risks. We argue that drawing on these strategies enables financial institutions to keep stranded assets afloat rather than orchestrating a collective phase-out. Paper Link: https://papers.ssrn.com/sol3/papers.c...