Bank watchdogs zero in on near-term climate risk

The Network for Greening the Financial System says recent extreme weather events and the war in Ukraine have made clear that the finance industry must work with short-term climate scenarios to avoid risky investments in favour of those that will help achieve net zero emission. — Bloomberg

COPENHAGEN: Banks and insurers need to anticipate the potential losses that climate change will cause not just decades ahead, but in the near future, according to the global network of central bankers and regulators created to steer the industry toward zero emissions.

The Network for Greening the Financial System (NGFS), an organisation that represents more than 100 of the world’s central banks and financial regulators, says recent extreme weather events and the war in Ukraine have made clear that the finance industry must work with short-term climate scenarios to avoid risky investments in favour of those that will help achieve net zero emission.