The report introduces a structured framework designed for use by business leaders and risk managers. It builds on the CCRS’s earlier work, “Cambridge Taxonomy of Business Risks,” which was released nearly ten years ago.
The new publication highlights the complexity of transition-related challenges by underscoring the interdependence of physical and transition risks linked to decarbonisation. It notes that addressing climate transition involves a fundamental shift away from "business-as-usual" approaches and suggests there is potential value for organisations that engage proactively with the process.
According to the CCRS, the taxonomy can assist organisations in identifying areas that may not be captured in conventional risk analysis. It is intended to help stakeholders better understand the interconnected nature of systemic risks and explore their implications for operational continuity, resilience planning and business strategy.
“The AXA Research Fund is committed to supporting collaborative research that enhances our understanding of key global risks and contributes to building a more sustainable society. This taxonomy will serve as a valuable tool for decision-makers and practitioners involved in the transition,” AXA Research Fund climate & environment scientific philanthropy partnership manager Eloi Astier said.
AXA XL and the AXA Research Fund have a longstanding collaboration with CCRS, including their role as founding partners in the Cambridge Systemic Risks Hub, established in October 2023.
As part of this collaboration, AXA XL has supported CCRS in promoting joint research with public-sector institutions. These efforts include modelling systemic risks and designing frameworks to inform both regulatory planning and insurance product innovation.
Earlier this month, AXA XL’s UK and Lloyd’s business also announced a digital partnership with McGill & Partners to enhance the underwriting process across multiple product lines. The initiative includes the use of AI-driven dashboards and real-time data analysis, aimed at improving placement efficiency and transparency.
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