Transitioning financial institutions and firms to a zero-carbon future
This project aims to transition Australia from a fossil fuel dependent economy to a strategic leader in rapid decarbonisation by generating concrete metrics, models and decision-making tools that will empower firms to meet the challenges of transitioning to a net-zero future. This project is divided into three topics: 1) Transition related assessment, 2) Transition-aligned investing, and 3) Transition-resilient business management which are detailed below.
Topic 1: The first topic, transition-related assessment, is focused on assessing the alignment of corporations with Paris-Compliant decarbonisation scenarios. As part of this topic we focus on developing rigorous metrics of climate transition risk (and importantly, make a comparison to existing metrics), monitoring and verification of progress, ratings of companies and establishing parameters for disclosure.
Topic 2: With a focus on transition-aligned investing, topic 2 examines the assessment of investment portfolios in their compliance with Paris aligned deep decarbonisation pathways. Here, we examine the role of investors in the transition including access to finance, the role of transition-aligned investment and debt portfolios, and how and which financial products can be used to accelerate the transition.
Topic 3: The third topic, transition-resilient business management, examines managerial decision-making to drive accelerated action. This includes decision-making around transitioning portfolios, understanding managerial knowledge of transitions, and shaping decision making towards transition under uncertainty.