Small logo Subscribe to leading news on impact investing. Learn More
The Brief Originals Dealflow Signals The Impact Alpha Impact Voices Podcasts Agents of Impact Open
What's Next Measure Better Investing in Racial Equity Beyond Aid Beyond Trade-offs Impact en las Americas New Revivalists Women Rising in India Operation Impact
Smarter Money Women Rising 2030 Finance Locavesting Inclusive Economy Regeneration Impact Tech New Power Geographies
Slack Conference Calls Events Contribute
The Archive ImpactSpace The Accelerator Selection Tool Network Map
About Us FAQ Calendar Pricing and Payment Policy Privacy Policy Terms of Service Agreement Contact Us
Industry News Impact Management Good Business Personal Finance Faith and investing Billionaires
Gender Lens Investing Women Rising in India
SDGs Climate Finance Clean Energy Innovative Finance Full Stack Capital Long-termism
Opportunity Zones Investing in place
Entrepreneurship Return on Inclusion Good Jobs Inclusive Fintech Creative economy Housing New Schooled Well Being People on the Move
Conservation Finance Farmer Finance Financing Fish
Blockchain/AI/IoT Urban Tech Food Tech Inclusive Fintech
Human Rights Democracy and Peace News and Information
Africa Asia Europe Latin America Middle East Oceania/Australia China Canada India United Kingdom United States Growth Markets
Subscribe
Features
Series
Themes
Community
Data
Subscribe Log In
More

Big banks gear up to navigate low-carbon ‘transition risks’



ImpactAlpha, April 30 – Big banks took another step toward full carbon accounting, backing new guidance to assess their ‘transition risks’ as the world moves to a low-carbon economy. Assessing risks posed by climate warming scenarios is a key recommendation of the Task Force on Climate-Related Financial Disclosures, the industry group chaired by former New York mayor Michael Bloomberg.

  • Adaptable… The new methodology allows banks to apply state-of-the-art climate scenarios across multiple risk factors and timeframes.
  • Global banks… The 16 banks that collaborated to develop the methodology and will help pilot-test it include ANZ, Barclays, BBVA, BNP Paribas, Bradesco, Citi, DNB, Itaú Unibanco, National Australia Bank, Rabobank, Royal Bank of Canada, Santander, Société Générale, Standard Chartered, TD Bank Group and UBS.

Climate accounting is destiny, Bank of England Governor Mark Carney suggested in a 2015 speech to insurers. “We can build that virtuous circle, of better understanding of tomorrow’s risks, better pricing for investors, better decision making by policy makers and a smoother transition to a low-carbon economy.”

–Elena K. Johansson

Due to an editing error, an earlier version of this article incorrectly stated one of Mark Carney’s professional positions. Carney is the governor of the Bank of England and the chairman of the Financial Stability Board. The article has been corrected.

You might also like...