Leading UK banks and insurers recently took part in a Climate Biennial Exploratory Scenario (CBES) exploratory analysis, the results of which were published on May 24, 2022. The aim of the exercise was to understand the level of climate-related risk that financial institutions, as well as the wider financial system, are exposed to risk under different climate scenarios.
In this paper we note that climate change will have a material impact on financial services, and the CBES exercise reaffirms the need for the sector to address the associated risks. An early and effective response will result in lower costs and less impact to business profitability, as well as reducing the impact to the wider economy. Read more here.