Carbon Risk

Carbon risk refers to the potential financial, operational, and reputational risks and opportunities associated with an organisation's greenhouse gas emissions, exposure to carbon-intensive assets, or dependence on fossil fuels. Carbon risk can result from regulatory changes, such as carbon pricing or emission reduction targets, as well as from market shifts, such as the transition to renewable energy or changing consumer preferences. Assessing and managing carbon risk is essential for businesses and investors to adapt to a low-carbon economy and ensure long-term sustainability.