Legal & Regulatory News

NGFS publishes overview of environmental risk analysis by financial institutions

The Network for Greening the Financial System (NGFS) has published an overview (the Overview) of environmental risk analysis (ERA) by financial institutions, providing an extensive list of examples of how environmental risks are transmitted to financial risks. The Overview also includes a comprehensive review of the tools and methodologies for ERA used by financial institutions including banks, asset managers and insurance companies.

The Overview identifies a number of major barriers to the wider adoption of ERA by the financial services industry, including a lack of awareness of environmental risks, inadequate data, incomplete methodologies and limited capacity.

Alongside the Overview, the NGFS published an occasional paper presenting a more detailed discussion of the tools and methodologies for ERA through case studies conducted by over 30 organisations.

Click here to access the Overview.

Click here to access the occasional paper.