Climate Risk is a complex topic for the Banking Industry, combining social and environmental aspects, and two distinct concepts of physical and transition risk. Several months of research have led to the identification of challenges that are impairing the sector from addressing this complex topic and effectively transitioning to ‘Greener’ financing models.
Thinking about ways to remediate these challenges, the conclusion was that one of the key success factors was to involve international authorities and regulations. The 7 principles described in this document propose a novel approach to do so.