Climate-Related Risks - A Focus on Banks and Credit Risk

Abstract

Financial institutions are reshaping their business models to address the challenge of sustainability. Banks and investors are increasingly incorporating climate risks into their decision-making processes. Yet today, these risks are not always correctly priced in financial markets. Greater coordination between public and private initiatives could help ensure sufficient capital flows toward sustainable investments to meet global targets and favor shifting to a sustainable economy. The most recent SFI Roundup offers practical and research insights into this topic from Alexandra Lau, Head of Corporate Development and Sustainable Asset Management at the Basellandschaftliche Kantonalbank (BLKB); SFI Prof. Erwan Morellec, EPFL; SFI Prof. Steven Ongena, UZH; SFI Prof. Zacharias Sautner, UZH; and Tadas Zukas, Global Lead Senior Legal Counsel Sustainability/ESG at Bank Vontobel.