Consolidating Climate Change within Asset Management

Asset management is a systematic process of deploying, operating, maintaining, upgrading, and disposing of assets cost-effectively. The term is most commonly used in the financial world to describe people and companies that manage investments on behalf of others.

This is the definition taken from Wikipedia. It’s very clear. I have nothing against it. However, recently investors have started taking into account the climate Change in Asset Management.

By using various Risk Assessments, we can secure our assets (physical) for a longer period of time. One case study is being done in UK with regard to Thames Estuary 2100 Project. The Thames Estuary 2100 Project (TE2100) has developed a strategic plan for managing flood risk on the Thames Estuary over the next 100 years.The approach to option development and adaptation was developed by David Ramsbottom (HR Wallingford Limited) and Tim Reeder (UK Environment Agency), who contributed this case study.

Incorporating Climate change will help us asses to secure our assets unlike billions of dollars lost in natural disasters like Floods in Australia or wild fire in Russia. Implementing various studies, we can measure the risk on our investments.

Since the future is uncertain, there are various models that can predict the risk involved. Of course, they are not 100% sure but still very close to it. Currently, I am studying ‘Financial Risk Managment‘ with regard to environment. It’s very heavy with maths and financial big words but I find it interesting.

On the Internet, you can find hundreds of reports on Climate Change on asset management. I can personally recommend ‘Mercers – Climate Change Scenarios‘. It is supported by IFC and Carbon Trust. It is a public report so it will be easy to find.

It gives a thorough detail on various steps that should be taken by investors for securing the present assets or for future investments. It’s a 132 page report. So have a tea with cheese crackers and have a crack at this report over the weekend. 🙂

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