Climate risk analysis typically entails the development of scenario-based stress tests for assessing bank solvency and liquidity, using bank level data.
Without early action, the UK’s largest banks and insurers would suffer climate-related losses worth US$418 billion by 2050.
Insufficient visibility of emissions reductions, including Scope 3, thwarts investor scrutiny.
Greater scope and depth needed to keep pace with demand for more holistic approaches to climate risk management by banks and investors.
Financial institutions still don’t have expertise to handle net zero transition, according UNEP FI-backed report.
Greenwashing poses a “real and present danger” to industry efforts to advance sustainability considerations in their investment processes.
Guidance to be issued on climate risk management, scenario analysis and TCFD-aligned disclosures.
Guidance for banks on corporate governance, internal control frameworks, risk management, risk reporting, and scenario analysis, among other areas.
Tim Mohin, Chief Sustainability Officer at Persefoni, says the commitments made by financial institutions on Finance Day at COP26 must be followed...
Helen Droz, Vice President for Climate Risk Product Research at MSCI, shares her impressions of COP26 after a week in and around...
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