Climate Risk

Over the past few years, concern and public discussion around environmental damage and climate change – and their social impacts – have increased dramatically. Climate change may have a direct impact on an organization’s costs. Financial institutions that don’t assess climate risk in their portfolios, or hedge or divest their exposures accordingly, may see some of their assets lose significant value over time. Therefore, financial institutions should perform a self-assessment of their maturity in climate risk management. This assessment allows them to identify climate change exposure, disclose their findings and develop mitigation strategies.