Climate Checklist For Banks Set By Global Regulators

Financial regulators around the world have come up with new guidelines that will require all banks to fully assess their carbon impacts on the economy. This guideline will also include carbon reduction goals that will become mandatory for banks. 

What this means for banks is that they will have to assess and quantify the organization's climate risk factors. They will have to collect and analyze data and link the improvements to remuneration packages. 

Reuters had some more details to report on the new obligations. 

“Banks must look at how risks from climate change affect their business strategy, training of senior staff and board members, internal controls, capital and pay over the short, medium and longer term, the guidance showed.”

Essentially, banks will have to prove that they are accurately measuring and assessing their climate impacts and then taking actions that have a positive impact on greenhouse gasses. 

According to regulators, there are very few banks that have been taking such an approach, and because of a lack of voluntary commitments, the decision was made to force these actions through regulations. 

Chris is one of GreenCitizen’s writers who has been a long-time advocate of individual responsibility when it comes to the environment. He shares GreenCitizen's passion for making the world a better place every day of the year.

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