Research: 88% of Top Global Banks Unprepared for Climate-Related Disruptions
17 Septiembre 2024 - 1:00AM
Business Wire
First-of-its-kind Report Ranks 50 of the
World's Largest Commercial Banks on Climate Adaptation Maturity; US
and Australian Banks Lag Behind
Climate X, a leader in climate risk data analytics, today
announced the findings of its first-of-its-kind report, The Top 50
Banks in the World Tackling Adaptation 2024, conducted in
collaboration with Climate Proof. This report ranks 50 of the
world’s largest commercial banks based on their climate adaptation
maturity, evaluated across 17 key indicators. The analysis reveals
a significant gap in preparedness, with 88% of the top global banks
failing to adequately address climate adaptation risks.
Despite growing awareness, only 7 of the top 50 banks assessed
meet more than half of the climate adaptation criteria, and none
meet all criteria. The report also highlights regional disparities,
showing that European banks lead in climate adaptation, while banks
in the U.S. and Australia lag, with many ranked at the bottom of
the list.
Top Ranked Global Banks by Climate Adaptation
Maturity
- Standard Chartered PLC (UK)
- Banco Santander SA (Spain)
- Banco Bilbao Vizcaya Argentaria SA (Spain)
- UniCredit SpA (Italy)
- Sberbank of Russia (Russia)
Lowest Ranked Global Banks by Climate Adaptation
Maturity
- Japan Post Bank (Japan)
- Morgan Stanley (US)
- Goldman Sachs Group Inc. (US)
- Capital One Financial Corp (US)
- U.S. Bancorp (US)
Link to full ranking of the top 50 banks by climate adaptation
maturity here.
Lukky Ahmed, CEO of Climate X, said: “As the climate crisis
accelerates, the ability of banks to help clients better understand
and manage physical climate risks is critical to long-term economic
stability. Our research shows that, despite increasing awareness,
many banks are still falling short in implementing robust climate
adaptation strategies. It is vital that banks incorporate
adaptation into their strategic decision-making processes and
develop products and services that support resilience.”
“This ranking sheds light on significant transparency and action
gaps across the banking sector,” said Kamil Kluza, COO of Climate
X. “While a handful of institutions are making strides, the vast
majority lack evidence of clear metrics and strategies for
supporting communities and businesses affected by climate-related
disasters. With climate inaction potentially costing up to 20% of
cumulative global GDP by 2100, banks will need to take a leadership
role in driving adaptation financing to ensure that businesses and
economies can withstand the challenges posed by climate
change.”
Methodology
The ranking was conducted using a proprietary methodology that
evaluated the adaptation maturity of banks across 17 qualitative
indicators, grouped into three categories:
- Think: Strategic alignment and assessment of physical
climate risks.
- Do: Implementation of adaptation measures and
strategies.
- Track: Monitoring, reporting, and transparency of
adaptation actions.
Climate X analyzed the latest public disclosures from each
institution, focusing on annual reports. A large language model
(LLM) was employed to measure alignment with the indicators,
providing a comprehensive overview of each bank's readiness to
manage climate risks. The full methodology is available inside the
report.
Operational Manual For Climate Risk Management
In addition to the Top 50 Banks in the World Tackling Adaptation
report, Climate X has published the Operation Manual: Climate Risk
for the Banking Industry, a comprehensive guide for financial
professionals to better identify, assess, and manage climate risks.
The manual offers actionable tools and insights into physical
climate risks, equipping institutions with knowledge to close the
adaptation gaps. It provides essential learning materials, such as
key characteristics of climate risks, and offers links to more
detailed resources that financial institutions can implement to
support resilience.
About Climate X
Founded in 2020, Climate X is a leading climate risk data
analytics company, helping organizations better understand and
respond to the impacts of climate change. Using advanced
technology, Climate X provides insights into future climate risks
through its platform, which creates digital twins of real-world
assets. By analyzing 500 trillion data points, the platform enables
customers—including banks, mortgage lenders, and real estate
firms—to assess and manage the risks climate change poses to their
assets and business operations. For more information, visit
www.climate-x.com.
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