Webinar: Integrating Physical Climate Risk into Investment Practices
Physical climate risks can significantly impact the value of investment portfolios. This can occur through asset damage, operational disruptions, or even company shutdowns. Climate risks can also lead to higher credit spreads, affecting portfolio performance.
Sign-up for a webinar on 9 April (12:30–13:15 CET), featuring Katja Brunner (Swiss Sustainable Finance) and Ruben Feldman (Zürich Cantonal Bank).
Katja will share regulatory insights, while Ruben will provide an asset management perspective. Their combined expertise will help your organisation determine the best way to integrate physical climate risks into investment portfolio management.
Assessing physical climate risks at the portfolio and asset level is just as critical as evaluating the climate alignment of investments, which primarily focuses on transition risks such as carbon footprints.
Two examples illustrate how physical climate risks can influence investment decisions:
Stadler Rail: In 2024, severe weather disrupted the company’s operations and supply chain. The firm adjusted its financial outlook for 2025 and 2026, prompting a significant adjustment in the share price.
Klingelberg: In 2021, persistent heavy rainfall in Western and Southwestern Germany caused substantial operational damages. The company was unable to meet its profitability targets for 2021/2022. To secure liquidity, the main shareholder injected EUR 10 million.
We identify four key action steps for climate-resilient investments:
Promoting Climate Risk Awareness - Encourage companies to systematically identify and address physical climate vulnerabilities, thus enhancing resilience and protecting long-term investment value.
Climate Risk Assessment and Integration - Conduct regular evaluations of physical climate risks across all investment activities and embed these findings into sustainability risk frameworks.
Advancing Climate-Related Disclosure - Support the adoption of standards like IFRS S2 and TCFD to promote transparent reporting on climate risks and opportunities.
Strengthening Self-Regulation - Foster industry-led initiatives that complement mandatory requirements, driving proactive risk management and accountability in the financial sector.
The webinar is designed for banks, fund managers, and other financial services providers eager to refine their approach to climate risk assessment, ensuring that environmental factors become a tangible part of portfolio management.
Don’t let physical climate risks catch your organisation off guard. Join us on 9 April to discover actionable strategies for identifying vulnerabilities, strengthening resilience, and aligning with evolving regulatory expectations.