Water Insecurity and Climate Risk: Investment Impact of Floods and Droughts
Concerns about water security often inform climate risk-related decisions made by environmentally focused investors (Porritt, The world in context: Beyond the business case for sustainable development. HRH The Prince of Wales’ Business and the Environment Programme, Cambridge Programme for Industry,...
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Walker T.; Gramlich D.; Vico K.; Dumont-Bergeron A.
2021
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fthzgzmk:oai:publications.hereon.de:40567 2023-06-11T04:14:57+02:00 Water Insecurity and Climate Risk: Investment Impact of Floods and Droughts Rayer, Q. Haustein, K. Walton, P. 2021 https://publications.hereon.de/id/40567 https://publications.hzg.de/id/40567 unknown Walker T.; Gramlich D.; Vico K.; Dumont-Bergeron A. Palgrave Macmillan https://dx.doi.org/10.1007/978-3-030-77650-3_6 urn:isbn:978-3-030-77649-7 urn:issn:2662-1320 https://publications.hereon.de/id/40567 https://publications.hzg.de/id/40567 info:eu-repo/semantics/closedAccess issn:2662-1320 Rayer, Q.; Haustein, K.; Walton, P.: Water Insecurity and Climate Risk: Investment Impact of Floods and Droughts. In: Walker T.; Gramlich D.; Vico K.; Dumont-Bergeron A. (eds.): Water Risk and Its Impact on the Financial Markets and Society : New Developments in Risk Assessment and Management. Cham: Palgrave Macmillan, 2021. 157 - 188. (DOI: /10.1007/978-3-030-77650-3_6) (ISBN: 978-3-030-77649-7) info:eu-repo/semantics/bookPart Buch Artikel 2021 fthzgzmk https://doi.org/10.1007/978-3-030-77650-3_6 2023-05-28T23:25:22Z Concerns about water security often inform climate risk-related decisions made by environmentally focused investors (Porritt, The world in context: Beyond the business case for sustainable development. HRH The Prince of Wales’ Business and the Environment Programme, Cambridge Programme for Industry, 2001; Stern, Stern Review executive summary. New Economics Foundation, 2006). Yet, potential liabilities for damage caused by extreme flood and drought events linked to global warming present risks that are not always reflected in share prices (Krosinsky et al., Evolutions in sustainable investing: Strategies, funds and thought leadership. John Wiley & Sons, 2012). Considering the highly destructive nature of such events, we query whether companies, or specific sectors, could and should be held at least partially liable for their emission-releasing business activities. Recent articles (Rayer & Millar, Citywire Wealth Manager®, (429), p. 36, 2018a; Rayer et al., Ecological, societal, and technological risks and the financial sector, Palgrave Macmillan, pp. 39–68, 2020) estimate that under a hypothetical climate liability regime, North Atlantic hurricane seasons might increasingly generate 1–2% losses on market capitalizations (or share prices) for the top seven carbon-emitting, publicly listed companies. In this chapter, we extend the concept of the climate liability regime to estimate the impact of global flood- and drought-related damages on the share prices of nine fossil-fuel firms (including the seven mentioned by Rayer et al. [Ecological, societal, and technological risks and the financial sector, Palgrave Macmillan, pp. 39–68, 2020]). Following Rayer et al. (Global warming and extreme weather investment risks (abstract) [Conference session], 2019; Ecological, societal, and technological risks and the financial sector, Palgrave Macmillan, pp. 39–68, 2020), we use incremental climate impacts and historical corporate emissions to estimate that climate change-related global flood and drought damages for the ... Book Part North Atlantic Hereon Publications (Helmholtz-Zentrum) 157 188 |
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Concerns about water security often inform climate risk-related decisions made by environmentally focused investors (Porritt, The world in context: Beyond the business case for sustainable development. HRH The Prince of Wales’ Business and the Environment Programme, Cambridge Programme for Industry, 2001; Stern, Stern Review executive summary. New Economics Foundation, 2006). Yet, potential liabilities for damage caused by extreme flood and drought events linked to global warming present risks that are not always reflected in share prices (Krosinsky et al., Evolutions in sustainable investing: Strategies, funds and thought leadership. John Wiley & Sons, 2012). Considering the highly destructive nature of such events, we query whether companies, or specific sectors, could and should be held at least partially liable for their emission-releasing business activities. Recent articles (Rayer & Millar, Citywire Wealth Manager®, (429), p. 36, 2018a; Rayer et al., Ecological, societal, and technological risks and the financial sector, Palgrave Macmillan, pp. 39–68, 2020) estimate that under a hypothetical climate liability regime, North Atlantic hurricane seasons might increasingly generate 1–2% losses on market capitalizations (or share prices) for the top seven carbon-emitting, publicly listed companies. In this chapter, we extend the concept of the climate liability regime to estimate the impact of global flood- and drought-related damages on the share prices of nine fossil-fuel firms (including the seven mentioned by Rayer et al. [Ecological, societal, and technological risks and the financial sector, Palgrave Macmillan, pp. 39–68, 2020]). Following Rayer et al. (Global warming and extreme weather investment risks (abstract) [Conference session], 2019; Ecological, societal, and technological risks and the financial sector, Palgrave Macmillan, pp. 39–68, 2020), we use incremental climate impacts and historical corporate emissions to estimate that climate change-related global flood and drought damages for the ... |
format |
Book Part |
author |
Rayer, Q. Haustein, K. Walton, P. |
spellingShingle |
Rayer, Q. Haustein, K. Walton, P. Water Insecurity and Climate Risk: Investment Impact of Floods and Droughts |
author_facet |
Rayer, Q. Haustein, K. Walton, P. |
author_sort |
Rayer, Q. |
title |
Water Insecurity and Climate Risk: Investment Impact of Floods and Droughts |
title_short |
Water Insecurity and Climate Risk: Investment Impact of Floods and Droughts |
title_full |
Water Insecurity and Climate Risk: Investment Impact of Floods and Droughts |
title_fullStr |
Water Insecurity and Climate Risk: Investment Impact of Floods and Droughts |
title_full_unstemmed |
Water Insecurity and Climate Risk: Investment Impact of Floods and Droughts |
title_sort |
water insecurity and climate risk: investment impact of floods and droughts |
publisher |
Walker T.; Gramlich D.; Vico K.; Dumont-Bergeron A. |
publishDate |
2021 |
url |
https://publications.hereon.de/id/40567 https://publications.hzg.de/id/40567 |
genre |
North Atlantic |
genre_facet |
North Atlantic |
op_source |
issn:2662-1320 Rayer, Q.; Haustein, K.; Walton, P.: Water Insecurity and Climate Risk: Investment Impact of Floods and Droughts. In: Walker T.; Gramlich D.; Vico K.; Dumont-Bergeron A. (eds.): Water Risk and Its Impact on the Financial Markets and Society : New Developments in Risk Assessment and Management. Cham: Palgrave Macmillan, 2021. 157 - 188. (DOI: /10.1007/978-3-030-77650-3_6) (ISBN: 978-3-030-77649-7) |
op_relation |
https://dx.doi.org/10.1007/978-3-030-77650-3_6 urn:isbn:978-3-030-77649-7 urn:issn:2662-1320 https://publications.hereon.de/id/40567 https://publications.hzg.de/id/40567 |
op_rights |
info:eu-repo/semantics/closedAccess |
op_doi |
https://doi.org/10.1007/978-3-030-77650-3_6 |
container_start_page |
157 |
op_container_end_page |
188 |
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1768371356680847360 |