The urgency to address climate change has never been more pressing, with recent findings showcasing the severe consequences of inaction. According to the Intergovernmental Panel on Climate Change, surpassing global warming by 1.5°C could lead to unavoidable increases in climate hazards, exposing ecosystems and humans to unprecedented risks. This report offers an in-depth analysis of physical climate risk management to equip retail banks with tools to effectively assess, manage, and minimise physical climate risks in their business. This report focuses on the nuances to provide concrete, actionable insights for financial institutions. Retail banks can utilise this as a practical guide as it provides a comprehensive overview of current practices, emerging trends, and innovative approaches to managing these risks.
It is a technical supplement to UNEP FI’s renowned annual Climate Risk Landscape Report which serves as a comprehensive resource delving into the available tools for financial institutions to assess physical and transition climate risks and boost their institution’s resilience to related impacts.
