Third Annual Global Survey of Climate Risk Management at Financial Firms

GARP cites both progress and challenges in climate risk scenario analysis capabilities and practices across the financial sector following a survey of 47 banks and building societies, 20 asset managers and 11 insurers and financial market infrastructure firms encompassing €39.26tn of balance sheet assets. While climate risk insight and disclosure is improving challenges remain around the development of reliable metrics and models. Key developments include sustainable product innovation as two thirds of firms have developed sustainable finance products-sets including bonds, loans and funds.