Banking on Risk: Are Financial Regulations Ready for Climate Impact?
Banks are now required to assess and report climate-related financial risks. But while the regulatory expectations are clear, the methods often aren’t. This leaves financial institutions in a bind. In this report, co-authored with Theodor Christensen at Envira Sustainability Analytics, we offer a practical guide to how financial institutions can meet these demands.
We show how to move from general climate risk awareness to concrete, quantitative risk modelling—linking risk drivers to damage functions, and discussing the pros and cons of using full ESG suites vs. specialized hazard-map tools.
The report includes recommendations for both financial institutions and regulators aiming to translate policy into action.