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- Banks are at the heart of risk intermediation and the financial system, to address climate change.
- Banks are constantly challenged to manage climate change uncertainty, evolving regulations and their impact on new loans and existing portfolios.
- GREENCAP is a comprehensive platform that equips banks to proactively manage their lending and loan portfolio risks.
- GREENCAP bridges the gap between the physical impact of climate change and its resulting credit risks.
- The platform is designed to quantify climate change risks aided by several analytical models.
- GREENCAP ensures that banks manage climate change risks at individual loan portfolio and institutional levels.
- The reporting requirements for banks’ green loan portfolios are becoming increasingly rigorous.
- This responsibility rests with Loan Officers, Chief Sustainability Officers and Chief Risk Officers.
- GREENCAP enables banks to seamlessly assess, strategize, and monitor their lending pipelines and sustainability limits.
News
- UN regulator predicts deep-sea mining is inevitable
- Sustainability skills in high demand in the green jobs market
- New Jersey forbids the disposal of EV batteries in landfills
- A smarter and more modern electric grid is the need of the hour
- India slated to become renewable energy hub with projects worth billions
- Under Armour launches tool to measure microfiber shedding
- General Mills supports farmers in adopting regenerative agriculture
Insights
- Climate-related financial risk regulations are firming up all around the world
- Banking risk management on the African frontline of climate change
- The ECB has led the way in climate guidance; now, banks need to follow it
- The US government is picking up pace on climate change, and banks’ risk departments should follow suit
- Avoiding bank liquidity risks arising from climate change
- Mission Zero: A report that can help banks chart their way to financing a green future
- Emergent best practices in climate change risk management – Bringing banks to the fore
A GreenCap Webinar on
Futureproofing Liquidity Risk
- How climate related risk impacts community banks’ liquidity
- A blueprint for inclusion of climate related financial risks in existing frameworks
- Introducing GreenCap, a solution designed to protect community banking from climate related risks
- Climate hubs, rolling out a future proofed solution to the community banking sector
Climate Change Data Resources
- Factors underlying financial climate risk analysis are complex and evolving, as governments enact regulations and other mitigation measures.
- Banks require a system that incorporates projections (physical impact), based on possible government actions (transition impact) and private businesses or individuals (adaptation).
- Based on this, central bankers and institutions can create financial cost/loss estimates for potential pathways, while governments and institutions can draft policies to meet commitments.
- Businesses are then analyzed commensurate with their adaptation to physical and transitional impacts.
- Together, these data sets form the inputs required to forecast potential losses and the resulting credit deterioration.
- Climate change financial risk assessment should flexibly incorporate multiple scenarios, as government policies and regulations change.
Building Resiliency
- Systemwide
Aiding regulators by gauging the impact of the climate change and mitigation policy to assess credit risk across the financial industry, stress testing, evaluating risk capital and projecting returns.
- Individual Banks
Assisting CROs and SROs with a resilient risk evaluation approach that views the balance sheet by ‘greenness’, determine the expected RWA change and set green targets while maintaining profitability.
- Client Level
Helping Loan Officers evaluate loans and portfolios of clients with a Yes/No resiliency result approach, calculating incremental GRWA changes and testing against green targets.
