Moving Forward With SDGs: Metrics for Action
What metrics are needed to accelerate sustainable development opportunities?
Beyond ESG with Climate Stress Testing: Getting Practical at Banks & Insurers
Giorgio Baldassarri, Global Head of the Analytical Development Group, S&P Global Market Intelligence
Steven Bullock, Managing Director, Global Head of ESG Innovation & Solutions, S&P Global Sustainable1.
Climate change has become an important strategic issue for global financial institutions as concern grows about lending to, investing in, or insuring companies that are failing to take steps to transition to a low-carbon economy. Stress testing aims to address several key areas for banks and insurers, including asset-level counterparty modelling and the financial impact on loan and investment portfolios. According to the Bank of England’s (BOE’s) framework, there are practical steps banks and insurers need to take to explore the two key risks arising from climate change: