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Yesterday the @NGFS_ released 2 important documents: “Overview of Environmental Risk Analysis by Financial Institutions” and the Occasional Paper, "Case Studies of Environmental Risk Analysis Methodologies".
The Overview was prepared under the auspices of NGFS Supervision Workstream chaired by myself. The 600-page Occasional Paper, edited by myself, @bencaldecott and @UliVolz, is a compendium of
ERA tools developed by leading financial institutions, academics & third-party vendors.
ERA tools developed by leading financial institutions, academics & third-party vendors.
The Overview summarized the ERA methodologies, identified the barriers to their wider adoptions, and suggested six options for mainstreaming ERA in the financial sector:
1) Enhancing ERA awareness;
2) Capacity building;
3) Supporting demonstration projects;
4) Disclosing risk exposures and ERA results;
5) Developing Key Risk Indicators (KRI) and statistics;
6) Developing a taxonomy of economic activities.
2) Capacity building;
3) Supporting demonstration projects;
4) Disclosing risk exposures and ERA results;
5) Developing Key Risk Indicators (KRI) and statistics;
6) Developing a taxonomy of economic activities.
With growing consensus on the significant impact that environmental risk can have on FIs, I hope both documents can contribute to more effective dissemination of these methodologies and encourage further research & development in this very important field. https://www.ngfs.net/en/communique-de-presse/ngfs-promotes-environmental-risk-analysis-financial-industry
