Net0Chain: An AI-Enabled Climate and Environmental Risks (CER) Framework for Achieving Net-Zero
Md Mahmudul Hasan, Abu Kowshir Bitto, Ashim Chakraborty, Ruchika Nanwani, M Mahfuzur Rahman, Nazia Hameed · 2023
This paper presents a comprehensive analysis of climate and environmental risks (CERs) and their significant financial implications. The existing scientific literature lacks adequate recognition and understanding of the financial impacts of CERs, particularly on financial services supporting entities exposed to these risks. The urgency to address these risks becomes paramount for achieving net-zero. To bridge this gap, we propose an AI-enabled framework, Net0Chain, designed to predict and manage the risks associated with climate change. Net0Chain integrates the COBIT 2019 IT Governance model to realize benefits and optimize resources, offering recommendations for achieving net-zero emissions. By implementing a circular economy model, the framework aims to guide financial sectors in translating physical and transition scenarios of climate change into actionable financial strategies. This paper underscores the importance of proactive and informed financial management in the face of growing climate challenges, advocating for a robust approach that aligns with global climate and energy transition targets.