The ERISC project, short for Environmental Risk Integration in Sovereign Credit analysis, aims to help financial institutions to integrate environmental risks in their risk assessments and investment decisions by identifying and quantifying how they can affect countries’ economic performance and thereby – potentially – sovereign credit ratings.
While phase one showed that environmental risks could be material, it did not quantify this materiality. In this second phase of research, the ERISC project focused on food prices as one of the key transmission mechanisms between environmental risks and economic impacts in order to better quantify the potential risk that national economies could face.
Published: 2016 | by: UNEPFI, Global Footprint Network

ERISC Phase II: How food prices link environmental constraints to sovereign credit risk (2.3 MB | 28 pages)