Climate risk – Regulatory response gathers pace
It is widely accepted that climate change and how we respond to it has significant consequences, both for the global economy and for society in general. While banks and other financial institutions are increasingly dealing with the effect of both physical and transition climate-related risks on all aspects of their operations, regulators must concern themselves not only with the impact of these risks on individual institutions but also on broader financial stability. A recent report by the Financial Stability Board (FSB) sets out the agenda for regulators and the emerging new regime for financial institutions.
- Climate change and systemic financial risk
- Lack of climate risk data
- New climate-risk disclosure regime approaches
- Climate-risk reporting requirements to increase