Climate | Benchmarking
Climate
Most banks run physical climate scenarios beyond 2050
Risk Benchmarking data finds majority rely on geospatial asset mapping, while a third use third-party catastrophe models
Big banks love their climate vendors; small banks, not so much
Risk Benchmarking: Lenders with blue-chip loan books more likely to favour climate tools, research finds
Why better climate data doesn’t always mean better decision-making
Risk Benchmarking research finds model and systems integration challenges almost as limiting to effective climate risk management
Climate risk managers’ top challenge: a dearth of data
Risk Benchmarking: Banks see client engagement and lender data pooling as solutions to climate blind spots – but few expect it to happen soon
Explore the data
Climate unsettled
“Banks are still struggling with the climate risk operating model: talk to 20 banks and you’ll get 20 answers.”
Risk.net’s Climate Benchmarking study suggests that may be only a slight exaggeration. While most banks place oversight of climate risk with the CRO, consensus on organisational models largely ends there. Firms are split between centralised climate teams; joint ownership between risk and a dedicated sustainability or ESG function; and those with responsibilities spread across functions.
Many banks yet to factor climate into credit risk models
Risk Benchmarking: More than a third of banks do not quantify climate risk impact on credit portfolios, study finds
CROs shoulder climate risk load, but bigger org picture is murky
Risk Benchmarking: Dedicated teams vary wildly in size, while ownership is shared among risk, sustainability and the business
Climate Risk Benchmarking: explore the data
Risk Benchmarking: View interactive charts from Risk.net’s 43-bank study, covering climate governance, physical and transition risks, stress-testing, technology, and regulation
‘The models are not bloody wrong’: a storm in climate risk
Risk Benchmarking: Risk.net’s latest benchmarking exercise shows banks confronting decades-long exposures, while grappling with political headwinds, limited resources and data gaps
