AXA XL and the AXA Research Fund have supported the publication of a new report by the Cambridge Centre for Risk Studies (CCRS), designed to help organizations assess and manage risks associated with transitioning to a low-carbon economy. The report introduces a structured framework for business leaders and risk managers, building on the CCRS’s earlier work, ‘Cambridge Taxonomy of Business Risks.’
The new publication highlights the complexity of transition-related challenges by emphasizing the interdependence of physical and transition risks linked to decarbonization. It notes that addressing climate transition requires a fundamental shift away from traditional approaches and suggests there is potential value for organizations that engage proactively with the process. According to the CCRS, the taxonomy can help organizations identify areas not captured in conventional risk analysis, understand the interconnected nature of systemic risks, and explore their implications for operational continuity, resilience planning, and business strategy.
“The AXA Research Fund is committed to supporting collaborative research that enhances our understanding of key global risks and contributes to building a more sustainable society,” said Eloi Astier, AXA Research Fund climate & environment scientific philanthropy partnership manager. “This taxonomy will serve as a valuable tool for decision-makers and practitioners involved in the transition.”
AXA XL and the AXA Research Fund have a longstanding collaboration with CCRS, including their role as founding partners in the Cambridge Systemic Risks Hub, established in October 2023. As part of this collaboration, AXA XL has supported CCRS in promoting joint research with public-sector institutions, including modeling systemic risks and designing frameworks to inform regulatory planning and insurance product innovation.
The report emphasizes the importance of proactive engagement with the low-carbon transition process, highlighting potential benefits for organizations that adapt effectively. By providing a structured framework for understanding and managing transition-related risks, the CCRS aims to support business leaders in navigating the complex landscape of climate-related challenges.
