Document / Publication
Source(s):
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)
Global Canopy
UNEP Finance Initiative (UNEP FI)
Financial markets can play a pivotal role in accelerating the transformation towards a sustainable, greener future as lending and investment decisions direct the allocation of capital in our economic system. For the markets to assume this role, a key prerequisite is to understand the underlying risks imposed by climate change and environmental degradation. In order to understand and consequentially adequately assess and price environmental risks to enable informed financial decision making, reliable data and methodologies are required.
There is a growing body of evidence – from the five-year drought that hit California from 2011 to the record heatwaves that have swept Australia in recent years – that natural hazards and their resulting impacts have the potential to pose systemic risks to the financial system.
Financial institutions from across the globe and environmental experts have partnered to enhance an economic stress test for banks with environmental scenarios to produce an open and free tool for environmental stress testing.
NEWS AND ANNOUNCEMENTS
DOCUMENTS / PUBLICATIONS
DOCUMENTS / PUBLICATIONS
DOCUMENTS / PUBLICATIONS
Permalink: https://www.preventionweb.net/go/58204