Financing a Net Zero Economy: The Consequences of Physical Climate Risk for Banks
Publish Date: 9/8/2021
News Source: Ceres
“The report analyzes $2.2 trillion of exposure for syndicated loans. It finds that the annual value-at-risk from physical climate impacts on just the syndicated loan portfolios of major U.S. banks could approach 10 percent, and that two-thirds of banks’ physical risk comes from the indirect economic impacts of climate change, such as supply chain disruptions and lower productivity, with coastal flooding (driven by sea level rise and stronger storms) representing the largest source of direct risk.”
