Library | ESG issues
Systemic Risk Management
Systemic risk refers to the possibility that an event at the company level could trigger severe instability or collapse in an entire industry or economy. It extends beyond individual failures, encompassing large-scale threats such as climate change, natural disasters, inflation, geopolitical crises, and pandemics. Effective systemic risk management requires proactive monitoring, regulatory safeguards, and resilience strategies to mitigate risks and ensure financial stability in an increasingly complex and uncertain global landscape.
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Navigating capital strategies for impact: Through assets, markets, systems
This report introduces an orientation matrix to help investors navigate impact strategies through the lenses of assets, markets, and systems. It categorises investor intent and contribution mechanisms—signalling, engagement, market growth, and financial flexibility—illustrated by case studies from pension funds, ethical banks, and family offices.
Chokepoints in global supply chains: Lessons from rare earths and hard disk drives
This report examines global supply chain vulnerabilities through the contrasting cases of rare earth elements and hard disk drive production. It distinguishes between persistent structural chokepoints and temporary disruptions, noting that resilience measures, including diversifying processing capacity or maintaining inventories, must align with the specific nature of the risk.
Common ownership around the world
This research documents the global rise of common ownership across 49 countries from 2005 to 2023. It reveals that overlapping ownership is concentrated among large firms and driven by "Big Three" asset managers. Cross-country variation is linked to competition laws, market entry barriers, and investor protection frameworks.
Investors, climate risk and forceful stewardship: An agenda for action
This report by Preventable Surprises outlines a 'Forceful Stewardship' strategy for institutional investors to manage systemic climate risk. It advocates for assertive proxy voting, demanding 2°C-aligned business plans, and elevating climate risk management to the executive level to protect long-term portfolio value and fulfil fiduciary duties.
Allianz Climate Economics Report 2026: a year of escalating costs
Allianz Research reports that extreme weather cost USD210bn in 2025. Europe’s 2026 heatwaves caused EUR113bn in output losses. A projected 2027 El Niño could cost USD451bn globally. The report highlights a widening adaptation gap, contrasting proactive prevention systems with reactive post-disaster relief across various regions.
Nature-related risks: A compendium of implementation practices to guide action by central banks and supervisors
This NGFS report details practical implementations for assessing nature-related financial risks. Reviewing 35 global initiatives and six case studies, it identifies water-related disruptions as primary risk drivers. Key findings highlight significant sector concentration, supply-chain amplification, and the relative maturity of physical risk modelling compared to transition risk analysis.
Systems Change Learning Handbook
The Systems Change Learning Handbook is a digital resource by the School of System Change. it offers frameworks, tools, and methodologies to help professionals understand and navigate complex systemic challenges, including environmental and economic transitions.
2026 global analysis of planned data centres for physical climate risk and resilience
This report analyses physical climate risk for 2,595 planned data centres globally. It identifies South East Asia and France as major hotspots and highlights that indirect infrastructure dependencies increase operational disruption risk ten-fold. It advocates for integrating climate resilience into early site selection and engineering standards.
Addressing insurability: A playbook for investing in place-based resilience
The global insurance landscape faces a risk management crisis, with natural catastrophe losses exceeding $100 billion annually. This report outlines four interventions to improve place-based resilience: improving risk-decision data, creating innovative financing structures, establishing trusted metrics, and realising co-benefits through multi-stakeholder coalitions to enhance insurability.
Carbon beta: A market-based measure of climate transition risk exposure
This research introduces 'carbon beta' as a market-based measure of climate transition risk. By analysing stock return sensitivity to a pollutive-minus-clean portfolio, the study identifies a significant risk premium for exposed firms and demonstrates how carbon beta effectively hedges against shocks to climate policy uncertainty and extreme weather events.
The shrinking buffer: Climate change and the fragility of food
This report examines immediate threats to global food security from a record El Niño, geopolitical conflicts, and fertiliser shortages. It highlights how climate change erodes long-term resilience through thermal limits and simultaneous crop failures, urging policymakers and investors to address systemic risks to inflation, economic growth, and financial stability.
Inequality and system health and stability: Risks and opportunities for businesses and financial institutions
This TISFD discussion paper examines the pathways through which inequality affects societal, macroeconomic, and financial systems. It identifies twenty-seven private sector drivers and provides a four-stage pathway to help businesses and investors assess system-level risks and opportunities, particularly those amplified by artificial intelligence and climate change.
Boeing: What investors can learn from a cautionary tale in corporate governance
This research briefing examines Boeing's systemic governance failures, tracing the transition from engineering excellence to short-term financialisation. It analyses how misaligned incentives, weak board oversight, and marginalised worker voices obscured operational risks. The report advocates for multi-stakeholder governance and institutionalising worker voice to manage long-term systemic risks.
Arctic climate tipping points under delayed CO2 emissions mitigation
This research analyses Arctic climate responses to CO2 emission cessation using Earth system modelling. It identifies a critical tipping threshold at 1700 PgC, beyond which the Arctic transitions from warming to abrupt cooling. This shift is driven by the collapse of Atlantic Meridional Overturning Circulation and amplified feedback processes.
The Green Scorpion: the macro-criticality of nature for finance
This research establishes a framework for assessing physical nature-related financial risks through scenario-based analysis. It highlights that nature loss, particularly water-related risks, creates significant macro-criticality for economies, with potentially 7-9% of global GDP at risk. The paper provides building blocks for central banks to prioritise and mitigate these systemic risks.
NGFS note on the economic and financial impacts of extreme weather events
This NGFS report analyses the macroeconomic and financial impacts of extreme weather using 31 case studies. It highlights how hazards propagate through supply and demand channels, affecting growth and inflation. The document details transmission to the financial system and the critical role of resilience factors like insurance and data quality.
