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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The use of the Lavender in Gaza and the law of targeting: AI-decision support systems and facial recognition technology

The report analyses Israel’s alleged use of the ‘Lavender’ AI decision-support system and facial recognition in Gaza, assessing compliance with international humanitarian law. It highlights risks from inaccuracy, bias, automation and opacity, concluding that commanders must retain judgement and verification to meet targeting obligations.
Research
23 May 2025

Rearm europe, rearm finance: What role for responsible investment in the financing of european defense?

Mirova
Mirova assesses Europe’s defence rearmament and examines how responsible investors could contribute without undermining ESG principles. It argues for selective financing, strict exclusions, and innovative tools such as defence bonds, while maintaining focus on environmental transition and European sovereignty.
Research
5 June 2025

Green finance was supposed to contribute solutions to climate change. So far, it’s fallen well short

The article argues that while climate disclosure and green finance initiatives have expanded since Mark Carney’s “tragedy of the horizon” speech, they have failed to shift capital at the scale required to address climate and nature risks. It contends that deeper structural reforms to financial valuation, incentives and capital allocation are needed to move beyond managing symptoms toward financing real-world solutions.
Article
5 January 2026

Next to fall: The climate-driven insurance crisis is here and getting worse

United States Senate Budget Committee
The report analyses U.S. homeowners’ insurance non-renewals, showing strong links between climate risks, rising premiums, and declining coverage. It finds coastal and wildfire-exposed regions face pronounced instability, with risks spreading inland. The Committee warns that worsening insurability could erode property values and trigger broader financial impacts.
Research
18 December 2024

Maximising Australia’s green growth: Leveraging trade and aid policy to drive Australia’s green exports agenda

Australian Sustainable Finance Institute (ASFI)
The report assesses risks to Australia’s fossil fuel exports and outlines how aligned trade, aid and climate finance policies can build demand for green exports. It proposes sustainable growth partnerships in the Indo-Pacific to secure markets, attract investment and support regional decarbonisation.
Research
5 January 2025

3D investing: Implications for net zero

CFA Institute Research & Policy Centre
The report evaluates 3D investing, extending mean–variance optimisation to include sustainability. It shows how integrating forward-looking climate metrics enables portfolios to balance risk, return, and decarbonisation, supporting alignment with Paris-aligned net-zero pathways under realistic investment constraints.
Research
8 November 2024

Investor influence in private markets: How investors activities can result in changes in outcomes for people and or the natural environment

The Predistribution Initiative
This report examines how private market investors influence social and environmental outcomes through investment decisions and firm-level actions. It proposes a framework to assess pathways, outcomes and causality, supporting impact management beyond portfolio company effects.
Research
10 September 2024

Trillions or billions: Reassessing the potential for european institutional investment in emerging markets and developing economies

Overseas Development Institute (ODI)
The report finds European pension funds and insurers have limited capacity to scale EMDE investment. Even doubling allocations by the 35 largest asset owners would yield about USD 120 billion annually, concentrated in investment-grade assets. Regulation constrains insurers more than pension funds.
Research
23 May 2024

Climate X

Commercial Research Providers
Climate X is a climate risk analytics company providing asset-level physical climate risk data and scenario analysis. It supports financial institutions, insurers and corporates with decision-making, stress testing and regulatory alignment using proprietary climate models and geospatial intelligence.
Organisation
1 research item

Sustainable Finance Roundup December 2025: Nature, Regulation, and the Hardening of Risk

This month’s sustainable finance roundup traces the shift from ambition to enforcement, as climate and nature risks become financial, regulatory and legal realities. It covers Australia’s environmental law reforms, the embedding of climate and nature risk through prudential supervision, disclosure and shareholder pressure, and insurer warnings on the limits of insurability. It also highlights how markets are responding to deforestation and biodiversity risk, and how litigation and regulation are reshaping governance and long-term financial resilience.
Article
29 December 2025

Investing in tomorrow: A guide to building climate-resilient investment portfolios

Investment Leaders Group
This guide outlines how investors can integrate physical climate risks into listed equity and debt portfolios, strengthen portfolio resilience, and mobilise capital for adaptation through asset allocation, due diligence, engagement, and collaboration across policy, finance and the real economy.
Research
15 January 2025

ICMA DLT bonds reference guide

International Capital Market Association
ICMA’s DLT Bonds Reference Guide outlines practical considerations across the lifecycle of distributed ledger technology-based debt securities. It addresses legal, regulatory, operational, trading, settlement and investor issues, aiming to support consistent market practice and wider adoption while reducing fragmentation in global bond markets.
Research
11 December 2024

AI and ESG: An introductory guide for ESG practitioners

Australian Government
This guide outlines how artificial intelligence intersects with environmental, social and governance practice, highlighting opportunities to scale ESG outcomes alongside material risks. It introduces responsible AI principles, regulatory context, assessment frameworks and practical examples to support informed, ethical AI adoption by ESG practitioners.
Research
18 October 2024

Making money talk nicely: Biodiversity impact assessment for investors

This study compares eight biodiversity impact assessment tools used by investors. It finds low consistency in company rankings due to non-standardised methods, weak transparency and limited validation, concluding that reliance on single tools risks mispricing nature-related financial risk and calling for improved disclosures and spatially explicit approaches.
Research
26 June 2025

Our predicament: The fundamental flaws of predominant economic systems - and the cultures scaffolding them

This report synthesises interviews with global thinkers to diagnose structural flaws in dominant economic systems. It argues that extractive capitalism, growth imperatives, inequality and ecological overshoot underpin a planetary predicament, and frames the challenge as navigation towards regenerative, responsibility-based economies rather than problem-solving.
Research
30 April 2025

Combined climate stress testing of supply-chain networks and the financial system with nation-wide firm-level emission estimates

This study utilises comprehensive Hungarian firm-level data to stress-test the economy and banking system against carbon pricing shocks. While direct impacts at €45/t appear minimal, supply chain contagion significantly amplifies losses, potentially by 4000% if essential inputs cannot be substituted. This highlights critical risks in systemic supply network dependencies.
Research
30 January 2025
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