Managing Climate Change Risks in the Commodities Sector
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Climate change impacts, whether extreme seasonal variations in weather or catastrophic events, pose special risks for the energy and natural resources markets given the direct impact on prices and also in the vulnerability of its infrastructure.
Often, energy and natural resource production is located in areas more prone to climate change, and frequently in emerging market nations, climate change risks highlight the protection gap that can lead to economic or political instability.
A recent Commodities Futures Trading Commission (CFTC) report highlighted the risks posed by climate change while urging the development of new products and derivatives needed by businesses to manage the risks. Brian Beebe, Head Origination Weather & Energy Americas, joined The HC Insider podcast to provide a guided tour of what businesses face and the innovative risk transfer tools available and in development to manage and even profit from the change.
Previously published on HC Insider