Imperial College Business School has launched a new partnership with Standard Chartered, the UK-based international banking group, to develop new solutions in the field of climate change risk management.
The four-year programme will utilise the capabilities of Imperial's Centre for Climate Finance & Investment to embed climate risks and opportunities into financial decision-making. The partnership aims to generate insights on practical questions, such as how new governmental policies will impact global trade, how organisations can build financial resilience to risks such as flooding, and how energy companies can navigate a zero-carbon transition.
The Centre for Climate Finance & Investment was established in 2017 to help investors and policymakers gain greater clarity about the risks and opportunities of the transition to clean energy, energy efficiency and low-carbon technologies.
Climate change is redefining the way we do business and manage risk. The better we can quantify the risks, the higher are our chances for developing effective responses as a society."
The significant funding from Standard Chartered will enable a new series of research projects covering risk management, scenario modelling, and financial risk assessment. The aim is to help translate academic science into world-leading business solutions.
Imperial will also provide education and training, at boardroom level and throughout Standard Chartered, via its digital learning and holographic capabilities, raising awareness of climate change and climate risk.
Dr Charles Donovan, executive director of the Centre for Climate Finance and Investment at Imperial College Business School, said: "We are very pleased to be working with Standard Chartered, one of world's largest emerging markets banks and a demonstrated leader on the issue of sustainability.
"This partnership will enable an important expansion of Imperial's efforts to help define a way forward for major financial institutions and corporations on climate risk management. Standard Chartered's support is a testament to not only the bank's commitment in this area but also the pace and scale of the challenges ahead."
Mark Smith, chief risk officer at Standard Chartered, commented: "Climate change is redefining the way we do business and manage risk. The better we can quantify the risks, the higher are our chances for developing effective responses as a society. We are excited to be partnering with Imperial College to create industry-leading solutions for climate risk management and, consequently, support emerging markets."
The partnership comes as part of Standard Chartered's wider commitment to take action on climate change and accelerate the provision of sustainable finance. Standard Chartered is the first emerging markets-focused bank to confirm it will only support clients who actively transition their business to generate less than 10% of earnings from thermal coal by 2030.