And the ballooning costs of weather-related disasters, which are expected to rise dramatically as climate change worsens, show why it’s critical to understand such risks. Since the 1980s, floods, wildfires, hurricanes, and other weather disasters have caused an ever-rising amount of financial ...
(2015) argue that the economic consequences of climate change (e.g., physical losses due to droughts, hurricanes and floods) driven by the rising global temperature are quite substantial. Naturally, climate change may lead to severe financial risks as the financial system supports the economic ...
Over the past decade, a consensus has emerged among academics and policy makers that climate change could threaten the stability of banks, insurers, and the broader financial system. In response, regulators from around the world have begun implementing policies to mitigate emerging climate risks in ...
Uncovers risks and opportunities presented in different combinations of trends. Highlights specific ways banks can evolve to support a more equitable, ethical and sustainable future. In confronting quandaries like climate change, economic fragmentation, and pervasive economic and social inequities, the study...
Also, SIDS are more adversely affected by climate change and variations in oceanic and atmospheric conditions which may result in more intense storms in the future further increasing vulnerability. The economic and geographic characteristics of island economies including their small size and location, ...
Climate change poses three broad risks to banks. First, the physical risk to the loan portfolio arising from damage or loss caused by climate and weather related events such as floods and drought. Second, the transition risk arising from the changes towards a low carbon (green) economy. ...
The physical risks of climate change are powerful and pervasive. Warming caused by greenhouse gases could damage livability and workability—for example, through a higher probability of lethal heat waves. Global warming will undermine food systems, physical assets, infrastructure, and natural habitats. ...
lenders. In recent years, regulatory policies have begun to play a growing role in addressing climate-related risks. However, more work is needed in this area, with central banks supplementing the efforts of governments and other authorities, who will be at the forefront of climate-related ...
. banking institutions. Access this practice note to review existing and proposed ESG disclosure requirements promulgated by the Securities and Exchange Commission and federal banking agencies, and explore recent regulatory developments around the identification and reporti...
notes. “Through such mechanisms, financial institutions - either directly or indirectly - provide financing for green energy projects, promote sustainable practices, integrate climate-related risks into their lending decisions, and collaborate with various stakeholders to develop supportive policies and ...