Assessing the sources of stranded asset risk: a proposed framework
| Autor: | Bob Buhr |
|---|---|
| Rok vydání: | 2016 |
| Předmět: |
Actuarial science
020209 energy Climate risk Financial risk Economics Econometrics and Finance (miscellaneous) Specific risk Financial risk management Risk management tools 02 engineering and technology 010501 environmental sciences Business risks 01 natural sciences 0202 electrical engineering electronic engineering information engineering Natural capital Business Business and International Management Risk assessment Finance 0105 earth and related environmental sciences |
| Zdroj: | Journal of Sustainable Finance & Investment. 7:37-53 |
| ISSN: | 2043-0809 2043-0795 |
| Popis: | Long-term investors, particularly bond investors, do not currently enjoy an efficient framework for assessing where stranded assets (SAs) might arise. Traditional risk categories currently embodied in credit research – Business Risk and Financial Risk – can capture a number of Environmental, Social and Governance (ESG) issues. However, there are some risks that are difficult to assess in this framework, primarily because many ESG categories themselves are not particularly efficient, or even meaningful, as analytical categories. We propose that a better analysis of these risks can be obtained by categorizing what are currently called ESG risks into three specific risk categories: (1) Operational or Management Risk; (2) Climate Risk, primarily related to climate mitigation and adaptation; and (3) Natural Capital Risks, a category intended to capture natural capital depletion, subsidy loss risks, and certain geopolitical risks – risks associated with water resources perhaps being the best example of ... |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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