stranded assets
nodeMoney & Finance
The words used to make climate risk a legal duty for banks were worked out at private meetings years before any public rule was written.
Who they are
The Smith School forums at Waddesdon Manor, held from 2014 to 2018.
What they do
The place where the vocabulary of 'transition risk', 'physical risk' and 'stranded assets' was created.
How it works
These forums came up with the terms that turned a political preference into a fiduciary obligation. That obligation was then carried into rules through the TCFD, the NGFS and the Basel Committee. The Basel Committee links its risk-weight table to capital requirements, which can strand assets. Earlier, on December 14, 2011, Al Gore and David Blood — former CEO of Goldman Sachs Asset Management — published 'A Manifesto for Sustainable Capitalism' in the Wall Street Journal. Their first recommendation was to 'Identify and incorporate risks from stranded assets'. Other documents include 'Unburnable Carbon 2013: Wasted Capital and Stranded Assets'. The record does not establish that the Basel Committee intends to strand specific assets.
Why it matters
It shows how a private gathering produced the language that later bound banks, turning a choice into a duty.
The engine's record — word for word
The corpus records: "The Smith School forums at Waddesdon Manor from 2014 to 2018 came up with the vocabulary — ‘transition risk’, ‘physical risk’, ‘stranded assets’ — that turned political preference into a fiduciary obligation through the TCFD, the NGFS and the Basel Committee." It is presented publicly as: "On December 14, 2011, Al Gore and David Blood — former CEO of Goldman Sachs Asset Management — published ‘ A Manifesto for Sustainable Capitalism ’ in the Wall Street Journal, listing as their first recommendation: ‘ Identify and incorporate risks from stranded assets ’." Documents named in the corpus: A Manifesto for Sustainable Capitalism; Unburnable Carbon 2013: Wasted Capital and Stranded Assets; TCFD; NGFS; Basel Committee. Cross-sourced to bankofengland.co.uk, smithschool.ox.ac.uk — documents cited by the corpus and retrieved independently of it.
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