//= get_template_directory_uri(); ?>
In 2016, UK and China co-chaired the G20’s Green Finance Study Group. Globally many central banks and financial regulatory authorities have now recognized the systemic financial risk that arises from climate change and started promoting economic development and structural transformation, looking beyond the narrow mandate for economy stability.
Governor Carney from Bank of England has been one of the first in terms of advocating the importance of orderly transition, drafting guidance on scenarios analysis and will soon spell out how it wants banks, insurers and investment companies to manage the financial risks from climate change. UK’s PRA is also the first regulator to publish supervisory statement on climate change.
This workstream looks at how banks should think about risks and return calculation which also links with Basel requirements.