European Banking Study 2020: the climate edition
It´s more than green-washing
Climate change and its impact on banking
zeb has recently developed a simplified approach to measure the exposure to climate risk of any bank or financial institution based on publicly available figures. The approach captures transition and physical risks and takes into account contract partners as well as countries in which an institution operates.
Recent research shows that European banks have just started to look into this topic. We believe that banks need to better understand the risks associated with climate change but there are also numerous opportunities to gain from the transition of the whole society. Banks should start to act now to avoid being surprised by peers and regulators alike.