It’s getting hot in here!

Climate risk is one of the most significant emerging challenges facing the financial services market, with potential impacts which are widespread and complex. International entities have historically been ahead of the U.S. in developing a framework for climate risk. More recently, the Biden administration is asking for clear, consistent, intelligible, comparable, and accurate disclosure of climate-related financial risks. Findings in a recent KPMG survey illustrate that insurers operating in the U.S. are still in the very early stages of incorporating climate risk into their models.

Climate scenario analysis can be a powerful tool for quantifying the impact of societal changes and human development on the Earth’s climate system. Read our latest article to explore approaches to climate risk scenario development, It’s getting hot in here! - Climate risk scenarios for insurers in an ESG world.

How KPMG can help

KPMG has global experience developing climate risk scenarios for clients and brings the latest ESG insights from collaborating across companies and stakeholders. Our risk consulting professionals can help you:

• Analyze climate risk across various climate futures
• Navigate the complex and rapidly changing regulatory landscape
• Transform climate related risks into a lasting competitive advantage
• Develop custom solutions to fit your company’s needs