Climate risk: Analysis of annual and climate reports shows mixed results among banks

The vast majority of leading banks and asset managers have acknowledged the need to act on climate risk and have made progress, but much remains to be done in terms of practical implementation, according to analysis of annual reports, and, where available, sustainability and climate reports of 63 of the world’s leading banks and asset managers across Europe, North America and Asia.

The research, commissioned by Acin, shows that about two thirds of the firms analysed reference a corporate net zero target between 2025-50 in their reports. About a fifth of these organisations have gone further by setting a commitment to reach their net zero targets by 2035, some 15 years ahead of Paris Agreement targets.

About three quarters of the banks and asset managers analysed reference alignment with the Task Force for Climate-Related Disclosures and its principles. Just a handful make no reference at all to how they themselves were aligning or were planning to align with TCFD.

Many of the financial institutions analysed are capturing, publishing and acting on climate-related data today, as well as preparing for future impact of risks. Many are undertaking scenario analysis and specific risk assessment exercises for areas most likely to be affected by climate risks.

Commenting on the findings of the research, Paul Ford, CEO at Acin, said: “It is encouraging to see evidence of banks and asset managers responding to climate change. That said, the research clearly indicates some tough work ahead. Commitments are an essential first step, but we know from experience that embedding risks and controls in an organisation is challenging. Climate risk is an emerging discipline where roles and responsibilities may not yet be fully defined and the nature of the risks transcend financial and non-financial. Staying on top of what is clearly emerging regulation is not easy either. UK and European regulators expect to see climate risk embedded in 2022, if firms are to avoid capital adequacy implications.”

    Share Story:

Recent Stories


Financial institutions were early adopters of cyber security and insurance. Are they still on top of the game?
Managing huge amounts of sensitive data online makes financial institutions a prime target for hackers. As such, the sector was an early cohort for insurers in creating cyber cover. Since then, the market has evolved almost beyond recognition. It continues to challenge itself to this day, complying with rigorous regulatory demands and implementing avant-garde enhancements to keep abreast of the ever-changing risks. Published June 2021

Manufacturing: An industry at risk amid great technological change
Of the many sectors of business, manufacturing companies are among the most at risk from cyber threats. How has the sector evolved to make it so vulnerable and what does the task of managing cyber exposure in a manufacturing company look like? CIR’s latest podcast with Tokio Marine HCC sought to answer all these questions and more. Published April 2021

Advertisement