In a world first, Mark Carney, the Bank of England governor, has pledged to stress test the bank against climate pathways.
Speaking at a summit in Tokyo, he stated that the global financial industry must do more to support a sustainable future, according to Crowdfund Insider.
Testing against climate pathways means the Bank of England will prepare risk management strategies by having financial institutions determine how their borrowers are planning to deal with climate change risks.
The news comes after more than 130 banks around the world, representing a third of the global industry, signed up to the UN’s responsible banking principles. This means they will have to consider the impact giving loans to certain players could have, not just what the financial wins could have.
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