{"id":95922,"date":"2024-09-18T00:00:00","date_gmt":"2024-09-18T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/uae\/wall-streets-biggest-banks-are-lagging-in-their-response-to-climate-risks\/"},"modified":"2024-09-18T00:00:00","modified_gmt":"2024-09-18T00:00:00","slug":"wall-streets-biggest-banks-are-lagging-in-their-response-to-climate-risks","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/uae\/2024\/09\/18\/wall-streets-biggest-banks-are-lagging-in-their-response-to-climate-risks\/","title":{"rendered":"Wall Street's biggest banks are lagging in their response to climate risks"},"content":{"rendered":"

Wall Street\u2019s climate blind spot: <\/strong>Some of Wall Street\u2019s biggest banks might be miscalculating a crucial risk metric \u2014 how they\u2019ll navigate a world shaped by rising temperatures and extreme weather, Bloomberg<\/a> reports. A new study from Climate X<\/a>, a risk data provider, suggests that while banks, such as Goldman Sachs, Morgan Stanley, and JPMorgan Chase, are beginning to track climate-related risks, they are not making the necessary shifts to address future disruptions caused by extreme weather and rising global temperatures. <\/p>\n

Deja vu?<\/strong> Kamil Kluza, chief product officer at Climate X, drew a parallel to the 2008 financial crisis, when banks overlooked liquidity risks. He believes a similar gap exists today with climate risk.<\/p>\n

How banks fared:<\/strong> Standard Chartered and Banco Santander emerged as the top performers in financing climate adaptation, scoring around 11-12 points out of 17, while US banks Goldman Sachs, Morgan Stanley, and JPMorgan Chase rank among the lowest for investments that support climate adaptation.<\/p>\n

Adaptation efforts fall short\u2026:<\/strong> Climate X found that while 80% of banks are collecting climate-related data, less than half are actively engaging with clients to adjust their financing for climate-vulnerable businesses. <\/p>\n

\u2026 creating a funding gap: <\/strong>The private sector\u2019s contribution to climate adaptation finance is still alarmingly low. From 2019 to 2022, it accounted for just 3% of the total funding, with most of the burden falling on governments and philanthropies. The current allocation of funds represents only a \u201cfraction of what\u2019s needed,\" according to World Bank Senior Managing Director Axel van Trotsenburg, who criticized that much of it is being used to \"rectify mistakes that should not have been made.\u201d<\/p>\n

ALSO WORTH KNOWING- <\/p>\n