Banks to address financial risks of global warming

Pilot project to increase financial reporting standards on environmental issues

Eleven banks to consider how to address financial risks of global warming. Photograph: iStock

Eleven banks to consider how to address financial risks of global warming. Photograph: iStock

 

Eleven major banks including Barclays, Citigroup and UBS said they will seek ways to address the financial risks of global warming, after Bank of England governor Mark Carney urged investors to act on the threat.

The group started a pilot project to implement the recommendations of a taskforce set up by Carney to increase financial reporting standards on issues related to the environment, according to a statement from the United Nations Environment Finance Initiative on Tuesday.

The group also includes Australia and New Zealand Banking Group, Banco Bradesco, National Australia Bank, Royal Bank of Canada, Banco Santander, Standard Chartered and TD Bank Financial Group, according to the statement.

The taskforce, which was chaired by Michael Bloomberg, founder and majority owner of Bloomberg News, said companies impacted by climate change should conduct scenario analysis and include results in their financial reports.

The final report was submitted to the Group of 20 Countries at their summit in Hamburg last week. Leaders noted the findings in a Climate and Energy Action Plan for Growth signed on Saturday by all countries except the US.

– - Bloomberg