Topic: Climate risk

Bank of England launches “fiendishly complicated” climate stress tests

The Bank of England has launched its biennial climate stress test for the UK’s largest banks - but insists it will not link the results to future capital requirements.

10 June 2021

Fragmentation concerns raised over EU’s climate disclosure approach

Japanese and US banking industry bodies have warned that ambitious EU moves towards sustainability disclosures – including a newly-finalised taxonomy and new standards for Pillar 3 disclosures – risk creating a fragmented global framework and “exporting” its model to non-EU institutions.

07 June 2021

Australian banks deny “virtue signalling” on climate plans

Australia’s banking industry group has defended local big-four bank ANZ’s plans to reduce its exposure to carbon-intensive projects, as companies in the coal industry complain of the “growing trend” of banks to decline financing for new projects.

24 May 2021

UN launches bank climate alliance as US Republicans decry regulators’ “abuse of power”

Over 40 of the world’s largest banks have joined a United Nations-led pact to achieve carbon neutrality by 2050, as several Republican lawmakers call the Biden administration’s push to put bank regulators at the forefront of the climate transition “political rhetoric masquerading as risk management”.

27 April 2021

Existing risk categories can capture climate risk drivers, Basel says

The Basel Committee on Banking Supervision says it has “not found any evidence” to support the creation of a separate risk category to address the drivers of climate risk – but indicates there will need to be more “granular” measurement of the changing climate’s impact on banks’ actual exposures.

16 April 2021

Brazilian climate risk proposals will be “a journey and a process”

Brazil’s banking regulator has proposed that financial institutions include more detailed climate-related losses in their risk management policies, but a “stark lack of diversity” at board level could hamper banks’ progress.

13 April 2021

UK outlines mandatory climate disclosure plans

The United Kingdom has announced its plans for mandatory climate-related disclosures under TCFD guidelines.

25 March 2021

Introducing the “green asset ratio”: EU banks to face new ESG disclosure requirements

The European Banking Authority has proposed new rules requiring the EU’s largest banks to provide detailed disclosures of how much of their portfolios contribute to climate change.

02 March 2021

Cherry-picking, greenwashing, and inconsistency: Fed and IOSCO regulators call for formalised TCFD expectations

US Federal Reserve Board governor Lael Brainard has expressed her support for mandatory climate disclosures by banks to help measure and mitigate climate risk, while IOSCO’s Ashley Alder has called for greater standardisation and “more substantive uptake” of TCFD expectations.

22 February 2021

Market “woefully unprepared” for SFDR with one month to go

EU regulators have published the final details for the Sustainable Finance Disclosure Regulation set to take effect next month, even as one practitioner says the market is “woefully unprepared” for its effects.

12 February 2021

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