Climate risk – The threats and opportunities for financial institutions

Financial institutions reached peak awareness of the far-reaching implications and systemic risks of climate change a few years ago. But firms are still grappling with how to approach climate risk in relation to regulatory, business and technological trends – and to act now for a better future.

Zoi Fletcher talks to Alan Smith, senior advisor, climate and environmental, social, and governance (ESG) risk at HSBC, and Zeeshan Rashid, global head of advisory for climate change, banking, financial services and insurance at Tata Consultancy Services, about the risks and opportunities of climate change for financial institutions, its relationship with ESG, the possibility of introducing climate adjusted risk-weighted assets and leveraging distributed ledger technology for climate risk management.

0:40 – An exploration of the threats and opportunities for financial institutions posed by systemic climate change risks

4:25 – Whether climate change has outgrown the ESG mandate or if climate risk and ESG should continue to be dealt with as a single agenda

10:59 – Whether climate risk will soon be reflected in the risk-weighted capital framework

17:21 – The role of distributed ledger technology in the calculation of physical and transition risks

23:14 – A call to the industry for urgent action

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