Single climate risk metric ‘not realistic’, says Bank of England
Senior official argues banks and investors must weigh up multiple factors when assessing climate risk
A senior UK regulator has poured cold water on industry efforts to find a single climate risk metric that can be used to make lending and investment decisions.
“To try and boil down [climate risk] to a single number is alluring but probably not realistic,” said Sarah Breeden, executive director for financial stability at the Bank of England.
Breeden, who is also the bank’s lead on climate change, added that financial institutions need to consider every element of the standards set out by the
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