Topic: Climate risk

Weather disasters “not very bad” for banks, says NY Fed

New York’s banking regulator has released a staff report playing down the significance of weather disasters on banks, saying that larger banks’ incomes “actually increase after disasters”.

01 December 2021

Australia’s rule-free climate risk guidelines fall short, critics say

Australia’s newly-released guidance on managing climate change risks doesn’t go far enough, environmental groups have said, criticising the lack of prescribed rules.

29 November 2021

Banks have “no plans for concrete action” on climate, says ECB’s Elderson

The European Central Bank has published its first climate assessment of banks in the bloc, with one board member saying they “haven’t even attempted to analyse the impacts of climate risk on their business at all”.

22 November 2021

Bank boards should lead climate charge, Basel Committee says

As COP26 ends with a new pledge from the banking sector to achieve net zero by 2050, the Basel Committee has published its first principles on how to manage and supervise climate risk.

17 November 2021

COP26 Finance Day: regulation round-up

Regulators and central banks have issued more climate-related commitments to coincide with COP26’s finance day, including preparations from the United Kingdom for becoming the world’s first “net-zero aligned finance centre” and the IFRS announcing plans for a single standard for sustainability disclosures.

04 November 2021

Climate risk to become part of PRA’s “core supervisory approach”, with remedial actions in store

The UK’s prudential regulator has warned it plans to ramp up supervision of climate-intensive financing and levy higher capital requirements to compensate for climate risk in 2022, while the Financial Conduct Authority has announced its own refreshed ESG strategy.

29 October 2021

Bank inhousers back voluntary carbon market at ISDA event

In-housers at Citi and Deutsche Bank have urged rapid regulation of the voluntary carbon market in the run-up to COP26 at an ISDA event in London, saying that it’s the only way to avoid greenwashing’s “kiss of death” – but they don’t want that regulation to come from government.

27 October 2021

Next stop: Glasgow

Banking regulators have issued a stream of initiatives targeting climate risk in recent days, with the litigation risks of climate-related disclosure and calibrations of scenario analysis on the agenda as governments prepare for the opening of COP26 in Glasgow, Scotland.

25 October 2021

Banks should be legally bound on climate plans, ECB’s Elderson says

The “vast majority” of EU banks are not carrying out necessary climate analysis and should be legally required to adopt climate transition plans, according to a European Central Bank board member.

20 October 2021

Freed of direct control, Brazilian regulator announces “granular” climate stress tests

Brazil’s newly autonomous central bank has moved to make it mandatory for banks to incorporate climate change-related scenarios into their stress testing from next year.

20 September 2021

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