Climate Change and Risk Management with Bob Litterman

Bob Litterman is chairman of the Risk Committee and a founding partner at Kepos Capital. Bob was also the chairman of the CFTC’s Climate-Related Market Risk Subcommittee which last month released a comprehensive report that identifies climate change as a systemic risk to the U.S. financial system and presents 53 detailed policy recommendations, the first of which is the need for an economy wide price on carbon. In this episode Bob talks about his background in risk management, how he got interested in climate change, and the incentives that are needed to transition to a net-zero emissions economy.

Climate Risk Disclosure Lab Report: https://climatedisclosurelab.duke.edu/2020/10/climate-risk-disclosure-lab-report/

CFTC Report: https://www.cftc.gov/sites/default/files/2020-09/9-9-20%20Report%20of%20the%20Subcommittee%20on%20Climate-Related%20Market%20Risk%20-%20Managing%20Climate%20Risk%20in%20the%20U.S.%20Financial%20System%20for%20posting.pdf