US and Canadian banks set up consortium to tackle climate change

by time news

Several major banks in the United States and Canada have formed a climate change risk management consortium, according to the Risk Management Association (RMA).

It includes 19 banks, including Bank of America, Royal Bank of Canada and Wells Fargo. As part of the new merger, banks will develop taxonomy, roadmaps and standards for measuring and managing climate risks. These standards will be integrated into the activities of lending institutions to facilitate a green transition in the industry.

The consortium was created with the participation of RMA, an industry-specific non-profit organization that unites 1600 banks and non-bank financial institutions, which promotes the principles of effective risk management in this area.

“While the world is facing the existential challenge of climate change, it is more important than ever that banks work together on this challenge. As they play a critical role in improving economies and societies, banks will contribute to the green transition to a greener economy, ”said Nancy Foster, head of the RMA.

She also did not rule out that banks can not only determine which assets are subject to climate change, but also collect information on harmful emissions from their clients. At the same time, according to Foster, it is still impossible to say exactly how the activities of the consortium will affect the policies of individual banks.

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