Economists, environmentalists and advisers to President-elect Joe Biden warn that global warming could spur that next catastrophe. The climate finance proponents among them argue that major lenders should be required to undergo climate-related stress testing before it’s too late.
Lenders should be subjected to tough reviews of their readiness for economic threats posed by severe weather, required to disclose risks lurking in their portfolios and perhaps forced to set aside extra capital, a government study recently recommended.
Smoke from the West Coast traveled across the US this week and is now well on its way to Europe. From our HQ in NYC – the sky was hazy and the sun resembled the Eye of Sauron.
Climate change risk has plagued US insurers over the last several years and the severity is growing. A task force led by several US financial regulators issued a 200-page report warning that climate change poses “serious emerging risks to the U.S. financial system.” Many central banks in other countries are conducting climate “stress tests,” and, in Europe, many companies are now reporting their climate risks.
Riskthinking.AI helps clients better understand their climate-related financial risk so they know where their portfolios are exposed and can hedge or take other appropriate actions.