The April 2024 report examines how investment firms are addressing climate risk, noting it affects all institutions regardless of stance or size. Climate risk translates into investment, regulatory, reputational, and operational risks, making assessment essential. Firms use both qualitative tools like questionnaires and quantitative metrics such as carbon intensity and implied temperature rise. Regulatory demands and net-zero commitments are increasing reliance on third-party data and analytics. Challenges persist with data quality, internal expertise, and political division, particularly in the U.S., despite growing efforts to integrate climate risk into investment and operational processes.

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