First guidance for banking industry to become more transparent on climate-related risks
Sixteen leading banks from four continents, convened by the UN Environment Finance Initiative (UNEP FI), in April and published a jointly developed methodology to increase banks’ understanding of how climate change and climate action could impact their business. Rabobank is proud to be one of the participating banks.
According to the UN Environment press release (https://www.unenvironment.org/news-and-stories/press-release/16-banks-and-united-nations-produce-first-guidance-help-banking) this understanding is fundamental to enable banks to be more transparent about their exposure to climate-related risks and opportunities in line with the Task Force on Climate-related Financial Disclosures (TCFD). It will also inform banks strategies to contribute to and benefit from the low-carbon economic transition and help them engage and support their customers to that effect. This is key because the climate-related risks and opportunities that banks face arise primarily from their services to clients.
The methodology and supporting materials are the first output of a unique and collaborative process over the past 10 months. It has brought together various functions from within the banks including credit risk, stress testing, sustainability and business development with leading scientists, and risk and investment management experts.
Bas Rüter, Director of Sustainability, Rabobank: “Rabobank’s participation in the UNEP FI pilot on the implementation of the recommendation of the TCFD is in line with our mission of Growing a Better World Together. By partnering with leading international organizations like UN Environment we aim to make a serious contribution to tackling the challenges brought about by climate change. Assisting in the realization of the Paris Agreement is part of our operational compass. Adequately managing the associated transitional risks is part and parcel of this commitment.”
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