How policies and regulation are evolving to respond to the climate crisis – response from policymakers and regulators

This is a complimentary series of webinars that specifically addresses the needs of Non-Executive Directors of banks and (re)insurance companies. We are very grateful to HSBC, which has led development of the material in collaboration with Chapter Zero, under the auspices of the World Economic Forum’s Climate Governance Initiative.

These small, interactive sessions will delve into a set of topics that are unique to the financial sector, largely deriving from the work undertaken by leading central banks such as the Bank of England and Banque de France, as set out by the Network of Central Banks and Supervisors for Greening of the Financial System.

The NGFS was convened around the premise that unabated climate change poses a significant risk to global systemic financial stability, and requires prudential oversight frameworks to incorporate a more systematic approach to assessing and mitigating climate risk. Regulated institutions operating in the 60-odd jurisdictions of NGFS member institutions can therefore expect to see heightened demands for differentiated assessment of climate risk exposure by users of banking and insurance services, and more stringent reporting requirements on mitigation actions taken.  

Modules will consist of the following: 

· Overview of the impact of climate change on financial institutions and the impact of regulation: Delivered over two sessions 

· Disclosure:  Status quo and roadmap ahead 

· Scenario analysis and stress-testing 

· Managing Physical and Transition Risk