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Physical climate and transition risk coverage in infrastructure: Where do we stand?
- May 1, 2023: Vol. 16, Number 5

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Physical climate and transition risk coverage in infrastructure: Where do we stand?

by Fabio Schweinoster Manfroni

It is no doubt true that infrastructure investments are exceedingly exposed to extreme weather events, such as flooding and storms. They are vulnerable, not only to potential damage to the infrastructure assets themselves, but also to operational disruptions from a wide range of networked systems to which the asset is interlinked. Similarly, with increasing regulatory requirements, Taskforce on Climate-related Financial Disclosures (TCFD)-aligned disclosures gradually becoming mandatory in multiple jurisdictions, and market and technological shifts, transition risks also represent a substantial concern for infrastructure assets. It is, therefore, critical for infrastructure managers to monitor and assess the exposure to such risks in order to hedge financial impacts. But how prepared is the industry to face these challenges and increase the resilience of its investments?

Leveraging data from the 2022 GRESB Infrastructure Fund and Asset Benchmarks, GRESB conducted a coverage a

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