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BlackRock, World Bank team with scientists to assess climate risk

Norwegian scientists have teamed up with some of the world's leading investment firms to assess the financial risks associated with global warming.

The new Centre for International Climate and Environmental Research (CICERO) Climate Finance initiative will bring together climate scientists and investors, including BlackRock and the World Bank, to develop tools to help investors more effectively incorporate climate risk into long-term investment decisions.

The centre plans to help investors accurately judge the financial risks posed by rising global temperatures, including assessing the financial impact of heatwaves, floods, extreme temperatures and species extinction.

Climate change researchers and financial stakeholders do not always speak the same language.

Kristin Hal Vorsen, director of CICERO Climate Finance and former Norwegian minister of finance, said she hopes the alliance will help forge better links between the scientific and financial communities.

"Climate risk and sustainable investment are ever higher on the agenda in many financial environments, but climate change researchers and financial stakeholders do not always speak the same language," said in a statement. "Our goal is to bridge that gap and jointly develop solutions."

The project, funded by the Norwegian Ministry of Foreign Affairs, will work on developing a range of tools to help investors assess climate risk, from implementing good management practices on climate risk to more accurately mapping climate scenarios and their impacts on specific economic sectors and geographic regions.

Alongside BlackRock and the World Bank, some of Scandinavia's biggest financial players are joining initiative's advisory board, including the Oslo stock exchange, Swedish pension fund AP2 and Norwegian bank DNB.

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