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Video

How investors can manage the financial risk of a climate transition

By David Nelson | April 10, 2023

David Nelson, Senior Director in WTW’s Climate and Resilience, explains transition risk, how it is measured, and how investors should manage it as a financial risk.
Climate|Medioambiental|Financial, Executive and Professional Risks (FINEX)|Risk Management Consulting
Climate Risk and Resilience
How investors can manage the financial risk of a climate transition

David Nelson, Senior Director in WTW’s Climate and Resilience Hub discusses what transition risk is, how it’s measured, and the four key stages of addressing climate transition risk.

David Nelson, architect of WTW’s climate risk metric and Senior Director in the Climate and Resilience, explains transition risk, how it is measured, and how investors should manage it as a financial risk.

Avoiding the most dramatic impacts of climate change will require a vast transformation of the global economy. Not only will supply chains need to adapt, but new products and services will be needed whilst others will change and maybe even disappear. Beyond the energy and transport sectors, the garment and food industries will also have to adjust to the climate transition.

In this video, David Nelson explains how investors can mitigate the risks of the climate transition and find opportunities that contribute to the global transition to net zero.

David Nelson is a Senior Director within the Climate and Resilience Hub (CRH) and developed the methodology behind WTW’s Climate Transition Value at Risk (CTVaR) metric. Prior to joining WTW, David was the Senior Director of CPI’s (Climate Policy Initiative) energy finance program, based in London. CPI’s energy finance program collaborated with national and state governments, public and private firms, investors, and asset managers across the world. Before joining CPI, David worked as an investor and strategic advisor to energy and utilities companies and their regulators in Europe, Asia, North America, South America and Australia for more than 20 years. David has degrees in engineering from the University of California at Berkeley and an MBA from Wharton.

At WTW, we have a team of specialists within the Climate and Resilience Hub dedicated to understanding the impact that the climate transition will have on investors, corporates, and countries.

Author

Head of Climate Transition, Climate and Resilience Hub, WTW
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Paul Osborne
Sales Director, Climate Resilience Hub, WTW
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