Welcome to Unpacking Climate Risk!

Climate change is an unprecedented threat to humanity. We in the finance industry have a unique opportunity to limit its worst impacts and provide for its current and future victims. While we alone cannot fix the core problem of runaway greenhouse gas emissions, we should contribute climate solutions that are robust, creative, and – most importantly – effective. This means using the power we have to actually drive down emissions in the real economy and build up society’s ability to withstand climate shocks. It does not mean wasting time on vanity projects that look good on paper or greenwashing what are really climate-harming activities.

Unpacking Climate Risk will hold a torch to the words and actions of financial regulators, banks, and corporations who are in the process of assessing climate-related financial risks and promoting environmental sustainability. Through a healthy mix of criticism and praise, combined with well-reasoned arguments, we hope to shape and improve the discussion of these critical issues.  

Why us, you ask? Well, we think our backgrounds make us well suited to the task. 

Tony Hughes has a long consulting and research career in the banking and insurance industries. He was formerly Managing Director and the global head of credit research for Moody's Analytics, a role that took him from his native Australia, to the US, and then to the UK – where he lives today.  He has been a prolific contributor of op-eds and research articles, publishing pieces in American Banker, Risk.net, Fortune and a wide range of other industry outlets. Since 2018 he has been a monthly columnist for the Global Association of Risk Professionals (GARP), and has worked as an independent consultant and writer since 2020. He is currently finalizing a book on climate risk in banking for RiskBooks. Prior to his career in industry, he was an academic in Australia. He holds a PhD in econometric theory from Monash University in Melbourne. 

Louie Woodall is a journalist who first took up the climate risk management beat with his popular newsletter, Climate Risk Review – which was widely read by regulators, risk professionals, and investors. The newsletter was acquired by climate tech startup Manifest Climate in 2021. Before then, he was an editor at Risk.net, a leading B2B publication on risk management and regulation in the financial industry.

We each have a deep understanding of the way companies control their public communications – especially on controversial, sensitive topics like climate change – and have a knack for translating ‘corporatese’.  We understand why companies often refrain from criticizing their regulatory overlords and why they may be hesitant to publicly challenge established industry orthodoxy. 

We are not constrained by these shackles. We will debate climate risk issues in an open and honest way, without fear or favor. That said, we do not abide climate change denialism in any form, not because of political correctness but because the view is ridiculous and outrageous.

At the same time, we abhor greenwashing in all its forms, whether driven by corporations or by government officials.  What we want is measurable and sustained progress towards net-zero goals and, ultimately, climate salvation for humanity.

We hope our writings prove both informative and entertaining. You should expect to find content that is challenging and engaging, the kind of stuff you won't find anywhere else.  We won't always agree with each other, and you may disagree with one or both of us many times. That's good; that's healthy. We can and should challenge each other on how the finance industry should tackle climate change, and do so in a respectful manner.

We hope you find our content compelling and invite you to subscribe!