Only 8% of participants conduct scenario analysis to assess climate risks and the impact of wider environmental risks and 25% said they have no plans to allocate budgets for climate-risk change projects and activities.
The research was carried out in January by management consultancy Sia Partners and law firm Cadwalder, Wickersham & Taft LLP.
Bradley Ziff, an operating principal at Sia Partners who directed the project for the two firms, said, “There is considerable work to be done, and study participants noted that the industry is well past the point of being kicked down the road.” Is leading.” Leaders are emerging in this area – that is, large banks and investors and those that have been investing for many years by implementing genuine climate risk mitigation strategies backed by operational and data efforts to meet both market and regulatory objectives.”
Scott Cameron, a senior attorney at Cadwalder’s financial services group, says financial institutions should stop thinking about climate change risk assessment as purely a regulatory issue, but rather as a way to increase market presence and serve as a customer service provider. You should think as well.
“Financial institutions that are most advanced in their thinking about climate risk are applying what they learn in tackling their own internal and proprietary challenges that can be passed on to clients and potentially with management. as opportunities to increase revenue by assisting customers with regulatory, business and stakeholder risks,” he said.