Risk Academy, a Nexortium programmeFinance and EconomicsDepartment of Financial Markets and Investment

Physical and transition risk, scenario analysis, disclosure, nature dependencies and insurability

Climate and nature financial risk

Climate and nature financial risk covers how physical and transition climate risk and nature-related risk reach financial institutions and portfolios, and how they are assessed and disclosed.

risksacademy.comfinance-economicsdiscipline

Climate and nature financial risk, drawn as term-structure curves: 0 primary courses open, 2 in preparation, 2 approved for authoring and 1 also taught here, across 8 subtopics and 2 connected disciplines. Courses: RAT-227 L2 in preparation, RAT-228 L2 in preparation, RAS-423 L3 approved for authoring, RAT-255 L2 approved for authoring, RAN-301 L2 also taught here.40L1L2L3L424
Climate and nature financial risk at a glance. Drawn as term-structure curves.
  • Open, 0
  • In preparation, 2
  • Approved for authoring, 2
  • Also taught here, 1
  • Subtopics, 8
Course codes from the curriculum; study levels L1 to L4.
Twin builder and simulatorHouston and the Ship Channel5 twin generators, 12 layers, 3 instruments
courses open now
0
in preparation
2
approved for authoring
2
power plants, 11,875 MW
30

Twin figures for Houston and the Ship Channel, counted from its layers at their stated dates.

Twin builder and simulator.

For Climate and nature financial risk: the faculty's twin of Houston on the planet map, the globe and in 3D. Pick a generator, switch layers, run the instruments; every layer prints its provider and date.

Houston and the Ship Channel: a flat plan of the faculty twin. Terrain 0 to 66 m; 30 power plants, 11,875 MW; 7 refineries and chemical works; 2 port land; 29 named works; 154 named industrial sites; Surface water extent, OPERA DSWx (HLS): live, loads in the twin; Built-up and settlement extent, HBASE 2010: live, loads in the twin. Contours every 10 metres from the elevation grid; power plants as marks; refineries, terminals and industrial sites as marks.
Houston and the Ship Channel, United States. Flat plan of the same data: relief as contours from the inline grid, the plants by capacity, the industrial points by kind and the numbers below. The 3D twin opens on devices with WebGL once its data and library have been checked.
  • Terrain 0 to 66 m
  • 30 power plants, 11,875 MW
  • 7 refineries and chemical works
  • 2 port land
  • 29 named works
  • 154 named industrial sites
  • Surface water extent, OPERA DSWx (HLS): live, loads in the twin
  • Built-up and settlement extent, HBASE 2010: live, loads in the twin
Credits and dates per layer are listed under the stage. Relief in the twin is exaggerated ×1.5 for legibility.

Drag to move, right drag or Shift with a drag to turn and tilt, Ctrl with the wheel to zoom. Keyboard: arrows move, Shift with arrows turn and tilt, + and - zoom, 0 resets, V steps through the views, Escape clears.

Flat plan of the same data: relief as contours from the inline grid, the plants by capacity, the industrial points by kind and the numbers below. The 3D twin opens on devices with WebGL once its data and library have been checked.

The map loads from this site as it nears the view (MapLibre 6.9.1, checked by hash).

The discipline in brief.

The discipline teaches physical risk assessment on asset locations, as the Ship Channel plants and sites at their ground elevations under the surface-water detection and built-up layers of the twin show, transition risk and financed emissions, climate scenario analysis with the Network for Greening the Financial System's scenario families (drawn on the Academy only as labelled design scenarios until their row admits), disclosure under IFRS S2 carrying forward the TCFD recommendations and nature-related disclosure under the TNFD recommendations (2023), nature dependencies and impacts, adaptation and insurability, transition plans, and the data and model gaps that limit every measurement. A graduate can assess a portfolio's physical risk from asset locations and a hazard layer with its estimates labelled, run a transition scenario through a sector's earnings, write a disclosure that states its data gaps, and read an insurability question from a loss curve.

This area covers how physical and transition climate risk and nature-related risk reach financial institutions and portfolios, and how they are assessed and disclosed. It is taught in the department of Financial Markets and Investment, Faculty of Finance and Economics, through 2 courses with it as primary discipline and 1 more that also teach it.

What the discipline covers.

8 subtopics, taught across its courses and labs.

Courses
0 open, 2 in preparation
Levels
L2 Intermediate
Labs
Exposure lab, Trigger lab
  • Physical risk to portfolios
  • Transition risk
  • Climate scenario analysis
  • Climate-related disclosure
  • Nature-related dependencies
  • Adaptation and insurability
  • Transition plans
  • Data and model gaps

Not yet taught by a course: Nature-related risk assessment and disclosure; Nature as systemic financial risk.

What is changing now.

Recent developments in climate and nature financial risk, each with its source; sources checked on 16 October 2026. Summaries are short readings of the source; follow the link for the full account.

The faculty hub.

News and research as they are published, per discipline, with the faculty's other tools.

The newest research, preprints, news and humanitarian reports for Climate and nature financial risk, each with its source and date, load here. Open the research and news hub

Frameworks and standards it works with.

From the Academy's risk taxonomy: the discipline's own entries and those of its primary courses, with how many courses teach each.

Frameworks and standards

  1. NGFS climate scenarios1 course
  2. TCFD recommendations and ISSB standards1 course
  3. TNFD recommendations1 course

Methods and practice

  1. Scenario analysis and stress testing1 course

2 in preparation.

No course with this primary discipline is open yet; these are planned, so you can prepare with the courses also taught here.

Courses with this primary discipline0 open, 2 in preparation

  1. RAT-227Climate Scenario Analysis and DisclosureIn preparationTechnical, L2 Intermediate, 10 hours (estimate)
  2. RAT-228ESG Risk IntegrationIn preparationTechnical, L2 Intermediate, 8 hours (estimate)

Courses from other disciplines.

These courses count in their own primary discipline and also teach this one; they do not count towards its achievement as primary courses.

2 courses approved for authoring.

Approved for authoringno enrolment and no achievement until authored and reviewed

  1. RAS-423Nature as Systemic Risk: Ecosystem Change and Financial TransmissionApproved for authoringL3 Advanced, about 10 hours (estimate)
  2. RAT-255Nature-related Risk Assessment and DisclosureApproved for authoringL2 Intermediate, about 10 hours (estimate)

Where the subject is worked on.

The three Foundry systems where it is practised.

  • Nexus FoundryGRIx systemPhysical and transition risk dataData room
  • DSS systemClimate scenarios for financeScenarios room
  • EOP systemNature-related change observed from orbitChange room

Nexus Foundry system pages describe what each system and its rooms are designed to do; they are not a service on offer, and studying here gives no access to them.

How technology helps and what risk it brings.

How the subject is practised in labs.

LabWhat you do in itCourses using it
Exposure labOverlay people and assets with hazard footprints2
Trigger labSet forecast thresholds, pre-agreed actions and messages1

What you can earn here.

Terms used on this page.

Climate and nature financial risk

Start with an open course.

The catalogue lists each course with its outcomes, labs, hours and level.

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