Risk Fin Porto

The Project

RiskFinPorto investigated the relevance and awareness of the Austrian finance sector for the transition to a low carbon economy and society. The project also examined the role of carbon disclosure and evaluated the financial risks of CO2–intensive assessments and opportunities for the Austrian capital market. RiskFinPorto identified success factors and barriers for a low-carbon transition of financial markets frame recommendations for action addressed to political and financial market actors on national and international level.

Foto Green Finance

AWARENESS of financial market participants

RiskFinPorto investigated the awareness of financial market participants regarding role, possibilities and responsibility to facilitate the transition to a low carbon economy and society by …

  • analysing Austria’s financial market structure
  • identifying the risks for financial institutions posed by the transition to a low carbon economy and society
  • surveying the understanding of financial companies’ position and responsibility in the context of meeting the Paris agreement

Climate POLICIES in the Austrian financial sector

RiskFinPorto took the following steps to inventorise and assess the regulative landscape:

  • Analysis of the different risks posed by climate change on the financial sector (legal as well as financial risks)
  • Evaluation of the relevance of carbon disclosure for achieving climate goals (divestment initiatives and growth numbers)
  • Examination of existing Austrian investment policies and foreseeable adjustments
  • Analysis of the different risks posed by climate change on the financial sector (legal as well as financial risks)
  • Evaluation of the relevance of carbon disclosure for achieving climate goals (divestment initiatives and growth numbers)
  • Examination of existing Austrian investment policies and foreseeable adjustments

ASSESSMENT of Climate risks

RiskFinPorto …

  • screened existing methods to assess climate risks for carbon disclosure within the financial sector
  • ensured that the analysed methods are of practical relevance and that they allow for an adequate implementation by the Austrian financial sector
  • provided an overview of different carbon policies of enterprises and the state of application

EXPOSURE to climate risks

RiskFinPorto set out for:

  • Quantitative assessment of the current climate risks for the Austrian financial sector
  • Analysis of the potential impact of divestment in Austria

SUPPORT to act in line with the Paris Agreement

If climate change gives you lemons, divest them and mix a climate-friendly portfolio! To support players on the financial market in turning climate-resilient, RiskFinPorto …

  • analysed success factors and barriers for the transition to a low carbon society and economy and the connection to the financial sector
  • identified measures and recommendation for policy makers and financial corporations to overcome existing barriers, in particular for the Austrian market
  • involved stakeholders for enhancing the practical usability of the project’s outcomes

Links:

RiskFinPorto – Leaving the bubble. Lose portfolio risk in 5 easy steps. Poster presented at the Austrian Climate Day 2019 in Vienna (2019)

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Mind the gap. Relevance and awareness of financial market actors for the low carbon transition. RiskFinPorto – Working Paper No. 1. (2020)

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Counting & Reporting Carbs. Methodological overview of current carbon accounting & disclosure approaches. RiskFinPorto – Working Paper No. 3. (2020)

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Carbon exposure. The state of the Austrian financial market. (Kohlenstoffrisiken für den österreichischen Finanzmarkt.) RiskFinPorto – Working Paper No. 4. (2020)

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Climate sentiments in the financial sector: How financial markets, policies and regulations generate barriers and opportunities to align portfolios to sustainability. (2020)

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