Date
April 21, 2022, 8:15 am - 4:00 pm
Presenters
Senior Manager
Description
Location: Penn Stater Conference Center, State College, Pennsylvania
Randy will be speaking on the topic of Managing Climate Change Risks for the Ag Lender.
Climate change is a global threat to every person and every organization. Organizations in each industry will develop different tactics for transitioning to lower-carbon economies. Although these transitions may bring heightened risk themselves, failing to adapt prompts even greater financial risk. The agriculture industry provides a fundamental human need – sufficient safe and nutritious food. Whether it’s droughts or lower-carbon transitions expected through the supply chain, the agriculture industry will need to closely manage climate risks to continue its support of our fundamental need, but also to mitigate financial risks.
Potential climate-related financial risks impacting this industry include:
- Extreme natural disasters and destructive storms
- More chronic shifts in weather patterns, resulting in droughts, wildfires, and cold waves
- Shifts in consumer preferences
- Availability and pricing of fossil fuels as well as the expected transition to cleaner power sources
- Supply chain disruption
- Disruptive technology
- Changes in policies and regulations
Financial institutions occupy a pivotal place in our society as lenders of capital to the agricultural community. For the farmers and the lenders supporting their capital needs, we’ll discuss a methodology to evaluate both direct and indirect climate-related threats and vulnerabilities. You’ll learn the importance of identifying and labeling climate threats through the lens of credit risk to the institution, as well as other categories of strategic, market, reputational, and operational risk that will impact the borrowers operating in the agriculture industry.
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