The absence of standardised rules and consistent approaches, combined with a fast-evolving regulatory environment, requires asset managers and banks to be fleet-footed...
As countries move at different speeds towards developing their own standards, is this multiplicity an obstacle to a greener future?
Climate risk analysis typically entails the development of scenario-based stress tests for assessing bank solvency and liquidity, using bank level data.
FSB highlights areas for further attention in annual stocktake on progress to address climate-related financial risks.
60% of banks don’t have a climate risk stress testing framework; only 20% consider climate risk when granting loans.
Lack of data on biophysical impact, emissions and geospatial impacting investment and lending decisions and exposure quantification.
Eight carbon neutral ETFs scheduled for Shanghai debut; five interbank transition bonds approved for launch.
Issuers can use SRI-linked sukuk proceeds for general purpose, subject to commitments to future improvements in sustainability outcomes.
All local and foreign financial institutions expected to adopt the basic recommendations within 24 months.
Combination will support the sustainability reporting work of the ISSB, which is also working to establish an MOU with GRI.
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