Climate risks: Headwinds for banking

Scientists have for several decades been warning about the catastrophic implications of unaddressed climate risks and the repercussions from the world’s inability to limit average temperature increase to 1.5ºC above pre-industrial levels by 2050. “Climate action failure” still features among the foremost long-term threats, and its severity is increasing.

Both physical and transition risks anticipated from climate change are alarming. Lethal heat waves impact the quality of life, and have the potential to adversely impact food security, physical assets and infrastructure, and disrupt supply chains. These factors are also influencing evolving regulations, shifts in consumer demand, human habitation choices, and innovation