UK banks told to step-up idenfication of climate change risks

UK banks told to step-up idenfication of climate change risks - Copyright (c) Copyright Thomson Reuters 2021. Click For Restrictions - https://agency.reuters.com/en/copyright.html

By Reuters

Published on 18/05/2021 - 20:45•Updated 20/04/2024 - 01:11

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LONDON (Reuters) - Banks are underestimating the potential impact of climate change on their business and need to use of computerised "scenarios" for identifying the risks, Bank of England executive director Sarah Breeden said on Tuesday.

"It is critical that financial firms recognise now that the race to net zero has started," Breeden said in a speech.

"In support of their ambitions, and consistent with our expectations, they need to run climate scenarios as part of business as usual risk management and embed climate risk management within day-to-day decision-making."

(Reporting by Huw Jones, editing by Louise Heavens)

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