Skip to content
Brand Logo

Climate and ESG Risk

Channel dedicated to discussion on the regulatory and societal expectations driving banks to meet their sustainability goals, by embedding ESG criteria into enterprise risk management frameworks to address climate-related and social risks

1 Topics 2 Posts
Contact Oliver Wyman

Reach out to our team if you want to collaborate on recent developments in Risk.

  • U

    Incorporation of climate risk metrics in Risk Appetite Statement

    2
    0 Votes
    2 Posts
    2 Views
    U

    I have seen the following:

    Percentage of the Business/Institutional portfolio in high transition risk sectors Proportion of the mortgage portfolio exposed to high physical risks (by 2050 under a 4-degree warming scenario is one specific example). Believe this is based on property level assessment and then some % increase in PD. Some reputational ones around ESG scores

    However, I don’t believe anyone would set the thresholds at a level that would likely be binding. So skeptically, I think this is just for reporting and transparency at the moment – which is probably right given the limitations of climate risk modeling

Terms of Use Privacy Notice Cookie Notice Manage Cookies