Climate Risk Podcast

Part three of this three-part special asks what seven years of climate risk have taught finance, where the sector's limits lie, and why there are reasons for optimism. In the final part of our 100th episode miniseries, we turn to the financial system and the risk profession itself. Over the past seven years, banks, insurers, asset owners/managers, regulators and risk professionals have all had to grapple with a rapidly evolving understanding of climate and nature risk.  The financial sector has developed new tools, products and approaches to climate and nature risk. But major challenges remain, including misaligned incentives, imperfect models, fragmented data and the difficulty of capturing risks that cascade across interconnected systems.  Drawing on some of the most memorable conversations from the podcast, we explore:  How financial institutions are embedding climate risk into decision making, and how far finance can realistically drive the transition;  What seven years of modelling, scenario analysis and data have taught us about the strengths and limitations of the tools we rely on;  And why innovation, systems thinking and the growing sophistication of the risk profession provide reasons for optimism.   ----------------  To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: https://www.garp.org/scr  For more information on climate risk, visit GARP's Global Sustainability and Climate Risk Resource Centre: https://www.garp.org/sustainability-climate  If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: [email protected]   ------------------  Today's Speakers  Jo Paisley, President of the GARP Risk Institute  Jo Paisley is President of the GARP Risk Institute, the thought leadership arm of the Global Association of Risk Professionals (GARP). Set up in early 2018, the Institute now focuses on climate and nature risk management thought leadership. Her career began at the Bank of England where she worked in a variety of roles, across macroeconomics, statistics, supervision and risk. Her last role was as a Director of the Supervisory Risk Specialists Division within the Prudential Regulation Authority, where she was heavily involved in the design and execution of the UK's first concurrent stress test in 2014. Prior to joining GARP, she worked as HSBC's Global Head of Stress Testing.  Dr. Maxine Nelson, Senior Vice President at the GARP Risk Institute  Dr. Maxine Nelson is a Senior Vice President at the GARP Risk Institute, GARP's research and thought leadership arm, where she focusses on climate- and nature-related financial risk management. She has extensive experience in risk, capital and regulation gained from a wide-ranging variety of roles, including Global Head of Wholesale Risk Analytics and Head of Capital Planning at HSBC, significantly expanding counterparty credit risk management at the UK Financial Services Authority during the last financial crisis, leading the credit risk team at KPMG London, senior credit risk consultant at Oliver Wyman, and embedding operational risk analytics globally at National Australia Bank. Maxine has a degree in mechanical engineering and a PhD about how best to apply probability theory to real world problems. 

Part two of this three-part special looks back at seven years of climate policy to ask what has worked, what has fallen short, and whether the response is keeping pace with the risks.  In the second part of our 100th episode miniseries, we turn from the science to the response. Over the past seven years, governments, regulators and markets have introduced a huge range of policies, frameworks and commitments aimed at accelerating the transition. But how effective have they really been? From the limitations of the COP process and the politics of carbon pricing to the explosion of climate disclosure, our past guests have repeatedly challenged whether the tools we are using are capable of delivering change at the speed required.  Drawing on some of the most memorable conversations from the podcast, we explore: What seven years of climate policy have taught us about the strengths and limitations of COPs, carbon pricing and other transition levers;  Whether disclosure, regulation and financial market reform are driving meaningful change or adding complexity without enough impact; And what history and systems thinking can teach us about the risks of moving too slowly, from societal instability to cascading and derailment risks.   ----------------  To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: https://www.garp.org/scr  For more information on climate risk, visit GARP's Global Sustainability and Climate Risk Resource Centre: https://www.garp.org/sustainability-climate  If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: [email protected]   ------------------ Today's Speakers Jo Paisley, President of the GARP Risk Institute  Jo is President of the GARP Risk Institute, the thought leadership arm of the Global Association of Risk Professionals (GARP). Set up in early 2018, the Institute now focuses on climate and nature risk management thought leadership. Her career began at the Bank of England where she worked in a variety of roles, across macroeconomics, statistics, supervision and risk. Her last role was as a Director of the Supervisory Risk Specialists Division within the Prudential Regulation Authority, where she was heavily involved in the design and execution of the UK's first concurrent stress test in 2014. Prior to joining GARP, she worked as HSBC's Global Head of Stress Testing.  Mark Campanale, Founder & CEO of Carbon Tracker  Mark is Founder and CEO of the Carbon Tracker Initiative, a climate-focused financial think tank best known for its work on stranded assets, the carbon bubble and transition risk in the fossil fuel sector. He has worked in sustainable finance for more than 20 years, co-founding some of the UK's earliest responsible investment funds and serving in senior advisory roles across sustainable finance, including with GFANZ, UNEP and UKSIF.    

Part one of this three-part special looks back at the seven years of the podcast to ask what we have learnt about the science, what surprised us, and what comes next. Seven years and 100 episodes after the Climate Risk Podcast began, we're taking the opportunity to step back and ask what we have learned, what has changed, and what the years ahead may hold.  In the first part of this special three-part miniseries, we return to the science. From climate tipping points and cascading risks to the role of oceans, nature and food systems, our past guests have repeatedly shown that climate risk is nonlinear, deeply interconnected and difficult to predict with precision.  Drawing on some of the most memorable conversations from the podcast, we explore:  Why tipping points and nonlinear change make climate change such a profound risk management challenge;  How interconnected systems, from oceans and biodiversity to food and infrastructure, can amplify and transmit climate shocks;  And whether events in the real world are unfolding in line with scientific models, or faster than we expected.  -------- To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: https://www.garp.org/scr  For more information on climate risk, visit GARP's Global Sustainability and Climate Risk Resource Centre: https://www.garp.org/sustainability-climate  If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: [email protected] -------- Today's Speakers Jo Paisley, President of the GARP Risk Institute  Jo is President of the GARP Risk Institute, the thought leadership arm of the Global Association of Risk Professionals (GARP). Set up in early 2018, the Institute now focuses on climate and nature risk management thought leadership. Her career began at the Bank of England where she worked in a variety of roles, across macroeconomics, statistics, supervision and risk. Her last role was as a Director of the Supervisory Risk Specialists Division within the Prudential Regulation Authority, where she was heavily involved in the design and execution of the UK's first concurrent stress test in 2014. Prior to joining GARP, she worked as HSBC's Global Head of Stress Testing. Prof. Tim Lenton OBE, Founding Director, Global Systems Institute, and Chair in Climate Change and Earth System Science, University of Exeter Prof. Tim Lenton OBE is the founding Director of the Global Systems Institute at the University of Exeter and Chair in Climate Change and Earth System Science. He has more than 25 years research experience, focused on modelling of the biosphere, climate, biogeochemical cycles, and associated tipping points. Tim is renowned for his work identifying climate tipping points, which informed the setting of the 1.5C climate target, associated net zero targets, and nationally determined contributions.   Tim works with policymakers and businesses helping them assess the risks of climate change and nature loss and highlighting the opportunities for 'positive tipping points' that can accelerate change towards net zero. In 2023, Professor Lenton led a team of more than 200 people from over 90 organisations in 26 countries to produce an authoritative assessment of the risks and opportunities of both negative and positive tipping points in the Earth system and society. The 'Global Tipping Points Report' produced in partnership with Bezos Earth Fund was published at COP28. 

Vanessa Havard-Williams OBE explores how the UK is building a credible transition finance market, from stronger policy and transition planning to public finance, insurance and investable projects.  Financing the transition to a low carbon economy is often presented as a question of capital: how much money is needed, where it should come from, and which technologies or projects should receive it. But the reality is more complicated. Finance cannot drive the transition in isolation. Companies will only invest at scale where the economics make sense, investors still need an appropriate return, and government policy plays a crucial role in shaping whether transition opportunities are commercially viable. There are also difficult questions around what credible transition finance actually looks like. How should financial institutions support high emitting companies as they decarbonise? How can they distinguish genuine transition from greenwashing? And how can new technologies and first of a kind projects overcome the barriers that often prevent private capital from flowing? That's why this episode explores: What transition finance means, and why clear definitions and credible transition plans matter; Why effective real economy policy is essential if capital is to flow at the scale required; And how government, financial institutions, public finance and insurance can work together to remove barriers and support a whole economy transition.  ---------------- Links from this Episode: Scaling Transition Finance: Findings of the Transition Finance Market Review: https://www.theglobalcity.uk/insights/scaling-transition-finance From Planetary Hazard to Financial Stability: Disentangling Climate Risk and Institutional Responsibility (Lisa Sachs Report): https://ccsi.columbia.edu/from-planetary-hazard-to-financial-stability-disentangling-climate-risk-and-institutional-responsibility/ Investor Climate Action: What Finance Can and Can't Achieve (Tom Gosling Interview): https://www.garp.org/podcast/investor-climate-action-what-finance-can-and-cant-achieve  ---------------- To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: https://www.garp.org/scr For more information on climate risk, visit GARP's Global Sustainability and Climate Risk Resource Centre: https://www.garp.org/sustainability-climate If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: [email protected] ------------------ Today's Speaker Vanessa Havard-Williams OBE is the Senior Independent Director of UK Export Finance and Chair of the UK Export Guarantee Advisory Council. She previously led Linklaters' global environmental and climate change practice, founded the firm's ESG practice, and co-led its Risk and Resilience and Crisis Management teams. In 2024, Vanessa led the UK Government's Transition Finance Market Review. She now plays a leading role in the development of the UK's transition finance market, including as a member of the Transition Finance Council steering group and Chair of its working group on credibility and integrity.

Hear from celebrated journalist David Shukman on why climate change is no longer a future risk, how extreme weather is exposing weaknesses in the systems we rely on, and why human stories are often the most powerful way to communicate climate risk.   Climate risk is often discussed in terms of future scenarios, long-term projections, and abstract global targets. But for many people, the impacts are already here: in homes lost to wildfire, hospitals disrupted by extreme heat, transport systems buckling under rising temperatures, and supply chains exposed to droughts and other weather extremes.  That shift from future risk to present reality raises difficult questions for governments, businesses, and risk professionals. Are institutions prepared for the climate we now live in? Who is responsible when critical systems fail? And how do we communicate these risks in a way that cuts through technical jargon and reaches people at a human level?  That's why today's episode will explore:  How extreme weather is already testing the systems we rely on;  Why recent climate events, such as heatwaves and wildfires, reveal critical gaps in preparedness and accountability;  And why human stories about the impacts of climate change might be the most powerful way to communicate the risks and galvanize action.     ----------------  To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: https://www.garp.org/scr  For more information on climate risk, visit GARP's Global Sustainability and Climate Risk Resource Centre: https://www.garp.org/sustainability-climate  If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: [email protected]   ------------------  Today's Speaker David Shukman is a celebrated journalist, author, and broadcaster who spent nearly four decades at the BBC, including nine years as its first Science Editor. During his career, he reported from around the world on major global issues, including conflict, science, environmental change, and climate risk.  Since leaving the BBC in 2021, David has worked as an independent writer, speaker, and commentator on climate change, biodiversity loss, and sustainable development. This work has culminated in the recent publication of his book, 'The Response: A Story of Fire and Flood in Britain's New World of Extremes'.