They said: “As financial policymakers and prudential supervisors we cannot ignore the obvious physical risks before our eyes. Climate change poses significant risks to banks and insurers from rising instances of catastrophic weather-related events, such as heatwaves, droughts and floods, which could land them with significant losses. Threadneedle Street has said as much as $20tn (£15.3tn) of assets could be wiped out by climate change if it is not effectively addressed. The open letter from Carney and De Galhau accompanies the launch of a report from the Network for Greening the Financial System (NGFS), an international group of central banks and financial regulators, outlining the steps necessary for financiers to tackle climate change. Although they have received praise for advancing the debate about climate change, Carney, central bankers and financiers have been criticised for expecting the banking industry to reform itself without tougher regulation being introduced.

Source: The Guardian April 17, 2019 05:01 UTC