ECB stress tests show how few banks can synthesize new climate risk data to improve their strategy or financing decisions

  • European Central Bank stress tests have found that €70 billion is at risk from the impact of climate change, although that is likely to understate the true risk level
  • Less than half of European banks currently undertake climate stress testing, and even fewer use climate stress testing to inform strategy (16%) or make financing decisions (8%)
  • Lack of data does slow climate risk measurement, but many banks could do more with the data and estimates that exist today to gain the experience they need to make better use of emissions-related data from customers

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Blake Goud

Blake Goud

Promoting adoption of responsible finance in Islamic markets & Islamic finance. CEO @RFIFoundation.