Banking on a low-carbon future: are the world’s largest Banks stepping up to the risks & opportunities of climate change?
The failure of 59 of the world’s largest banks to recognize climate risks and opportunities threatens to undermine efforts to support the transition to a low-carbon economy. This is the key finding of a report by Boston Common Asset Management report titled "Banking on a Low-Carbon Future". Banks play a crucial role in the allocation of capital in the economy by providing financial services to businesses, households, governments and financial institutions. As a result, banks are exposed to climate change-related risks including extreme weather events such as heat waves, droughts, storms and sea level rise, along with energy transition adjustments to limit greenhouse gas emissions which can create both risk and significant financial opportunities.