Ewha Develops International Climate Risk Management Model with Financial Supervisory Service
- 작성처
- Date2021.09.14
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Ewha Develops International Climate Risk Management Model with Financial Supervisory Service
Ewha signed an industry-government-academia business agreement to develop an international climate risk management model named “Frontier-1.5D” in partnership with the Financial Supervisory Service (FSS), major Korean businesses and the British Embassy in Seoul.
Frontier-1.5D, a collaborative effort by Ewha, the FSS, major Korean companies, and the British Embassy, is aimed at taking the initiative towards reaching a global consensus on limiting the average global temperature rise within 1.5℃ above the pre-industrial level (before 1850) and actively participating in climate risk management. The business agreement, as the first global collaboration effort involving financial supervisory authorities, businesses, academia and foreign embassies, is expected to present an exemplary case of international collaboration in the development of future climate risk management models.
The business agreement signing ceremony held at the British Embassy on Monday, September 13 was attended by President Eun Mee Kim of Ewha Womans University, Governor Jeong Eun-bo of the Financial Supervisory Service, British Ambassador to South Korea Simon Smith, the UK’s High-Level Climate Action Champion for COP26 Nigel Topping, CEO Kim Jun of SK Innovation, CEO Choi Eun-seok of CJ Cheiljedang, CEO John Rim of Samsung Biologics, Chairman Yoon Jong-Kyoo of KB Financial Group, and Chairman Cho Yong-byoung of Shinhan Financial Group.
The business agreement aims to mitigate climate-related uncertainties by developing a management model for climate risk, estimating the range of costs incurred by climate risk, and forecasting the losses faced by businesses and financial institutions following abnormal climate change and countermeasures such as carbon emission reduction. The development of a new model will make it possible to reduce management uncertainty, present methods of Environmental, Social and Corporate Governance (ESG), and attract foreign investors.
Ewha has been taking the initiative in researching climate change and now aims to play a leading role in developing the aforementioned climate risk management model as the only education and research institution to have signed the business agreement. The six corporations will provide climate risk data for each business sector and the analysis thereof, while the British Embassy will assume an advisory role for the development of the climate risk model, and the FSS will play a coordinating role in sharing their knowhow and mediating cooperation among the participants.
This joint industrial-government-academia project, which is based on the role of financial authorities in responding to a “Green Swan,” referring to unpredictable risks and threats brought by the climate change as defined by the Bank for International Settlements, is expected to contribute to enhancing the climate risk management capacity of stakeholders by coordinating their needs and capabilities.