LIFE16 GIC/FR/000061

From Wall Street to Main Street:

Connecting climate risk and
financial markets

Dr. Jakob Thomä

Managing Director, 2° Investing Initiative
To this…
230,000 industrial assets covering
~75% of global CO2 emissions
across ~20,000 companies
The status of corporate disclosure:

- Incomplete
- Aggregated
- Backward-looking
- Inconsistent
 2 options:
2020 Estimation error
2020
of +/-30%

2025 Estimation error 2025

NO INFORMATION FOR
unknown +90% OF COMPANIES

Alternative data Corporate disclosure

 Open-source
software

PhD thesis Public methodology Free software Data licenses

published packaging
Co-designed with users
30% reduction in -50% reduction in
20% regulatory cost
sales price

-32% in equity value and -4% in bond value

 INVESTMENT PLANS OF REGULATED ENTITIES’ INVESTEES
100%
90%
% share renewables in total planned
capacity additions 2017-2022

80%
70%
60%
50%
40%
30%
20%
10%
0%
Insurance companies capital expenditure profiles of their investee companies
 100%
90%
80%
level for thermal power assets 70%
Baseline water stress risk

60%
50%
40%
30%
20%
10%
0%
Fund (each bar represents a single fund, based on a sample size of ~350 funds)

5. Extremely high (>80%) 4. High (40-80%) 3. Medium to high (20-40%)

2. Low to medium (10-20%) 1. Low (<10%) unknown/"other"

 LIFE16 GIC/FR/000061

From Wall Street to Main Street:

Jakob@2degrees-investing.org

See our models at

www.transitionmonitor.org