How Well Are Banks Doing to Support the Paris Climate Goals?

Source: Desmog UK


An op-ed guest post by Sonia Hierzig, banking project manager at ShareAction

Banks are affected by climate change from all angles. As financial intermediaries with ties to every industry sector, they face both climate-related risks and opportunities.

On the one hand, they are exposed to the physical, transitional and liability risks linked to climate change via the clients they lend to and do business with. The ‘creditworthiness’ of banks’ clients can, for example, be affected by droughts or floods, climate-related legislation, or climate-related lawsuits.