It’s increasingly likely that banks will face new capital requirements that will reflect how exposed their loan books are to climate change.
“That is the logical next step,” Janine Dow, a senior director for sustainable finance at Fitch Ratings, said in an interview. “Because once you size a problem, then you identify the risk. And as a regulator, you can’t just leave an emerging risk exposed.”
Such a requirement would mark a significant expansion of new rules that the financial industry, particularly in Europe, is now facing amid a race against time to prevent an environmental catastrophe. The
“That is the logical next step,” Janine Dow, a senior director for sustainable finance at Fitch Ratings, said in an interview. “Because once you size a problem, then you identify the risk. And as a regulator, you can’t just leave an emerging risk exposed.”
Such a requirement would mark a significant expansion of new rules that the financial industry, particularly in Europe, is now facing amid a race against time to prevent an environmental catastrophe. The