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Assessing the Transition Risks Facing Carbon-Intensive Sectors

Tuesday, December 8, 2020 11:00 AM

A significant challenge facing risk professionals is understanding the transition risks created by a fast-moving climate policy landscape and how this will impact specific sector. Carbon-intensive sectors are already being affected by carbon-focused policies and given the critical role these sectors will have to play in the transition, this is a trend that is only going to increase moving forward. 

That’s why this webcast is exploring the data and methodologies being developed to analysis climate transition risk in the context of carbon intensive sectors. 

Join Ben Jones, Managing Consultant at CRU, as he takes us through a sector-specific case study of the transition risks facing carbon-intensive sectors. Whilst Ben’s presentation will focus on the metals and mining sector, there will also be broader practical lessons on how to evaluate this important transition risk.

Find out more about the case study:

Climate change policy could decisively impact financial returns in the metals and mining sector. However, risks to both investors and lenders vary widely across the assets and firms in the sector. This reflects both the carbon intensity of production (impacting policy risk) and existing differences in their competitive positioning (affecting policy resilience). Carbon policies will not only add to production costs, but also tilt and re-sort competitive positioning in the market, redistributing – in some cases fundamentally – risk and reward in the industry. Drawing on CRU’s proprietary “carbon stress testing” tools, designed to support the de-risking of capital allocation to the mining and metals sectors, this webinar outlines methodologies and data for undertaking a detailed analysis of transition risks in the aluminium and steel industries. It finds extensive risks across both the sectors, including among many currently highly competitive producers.

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