Скачать или смотреть Episode 14: Stranded Assets

Hosts:


• Matt Orsagh, Chief Content Officer at ED4S

• Nawar Alsaadi, CEO of Kanata Advisors, Chief Advisor at ED4S


Guest:


• Natasha Chaudhary, Research Fellow at The Institute for Climate Economics (I4CE)


Episode Focus: The concept of stranded assets and a shift toward "assets at risk" to better support financial institutions in navigating climate-related financial risks.


Key Takeaways:


1. Stranded Assets Explained:
• Traditionally associated with fossil fuels, stranded assets refer to devalued resources due to regulatory, market, or physical climate changes. Current definitions often focus on oil, gas, and coal sectors, but the concept can apply across industries.


2. Reframing to "Assets at Risk":
• Natasha advocates shifting from "stranded assets" to "assets at risk," broadening the focus to include potential asset value losses across all sectors under transition pressures. This proactive approach allows financial institutions to better anticipate risks and guide capital toward sustainable investments.


3. Proactive Risk Management:
• "Assets at risk" encourages financial institutions to manage risks dynamically, considering the entire value chain and transition readiness of companies, thereby supporting real-economy decarbonization rather than simply divesting from risky sectors.


4. Sectoral Examples Beyond Fossil Fuels:
• Key sectors such as real estate, agriculture, and automotive also face significant risks. For example, the EU’s building regulations for decarbonization by 2050 and the upcoming ban on internal combustion engines by 2035 present immediate risks to financial portfolios.


5. The Need for Regulatory Guidance:
• Clear regulatory frameworks and standardized transition plans are essential to accurately assess transition readiness across sectors, helping institutions manage climate risks effectively.



Conclusion: This episode emphasizes the importance of expanding the stranded assets framework to support proactive and comprehensive risk management across sectors, highlighting the role of financial institutions in driving climate-aligned investments.