Climate Risk and Financial Intermediaries: Regulatory Framework, Transmission Channels, Governance and Disclosure (Palgrave Macmillan Studies in Banking and Financial Institutions)

Disclaimer
Contents
About the Authors
List of Figures
List of Tables
1 Climate Risk Scenario
	References
2 Regulatory Framework, Standards, and Best Practices for the Financial Sector
	2.1 The European Union (EU) Context
		2.1.1 The European Banking Authority (EBA)
		2.1.2 The European Central Bank (ECB)
	2.2 The International Context
		2.2.1 Supranational Organizations
			Basel Committee on Banking Supervision—BCBS
			Financial Stability Board (FSB) and Task Force on Climate-Related Financial Disclosures (TCFD)
			Network of Central Banks and Supervisors for Greening the Financial System (NGFS)
			United Nations Environment Programme Finance Initiative (UNEP FI)
		2.2.2 The UK and the US Authorities
			The UK Authorities
			BoE-PRA
			FCA
			CFRF
			The US Authorities
	2.3 Stress Test Exercises at a Glance
		2.3.1 Climate Stress Test Exercises Performed by the ECB
			The ECB Economy-Wide Climate Stress Test
			Climate Risk Stress Test
	2.4 Conclusions
	References
3 Transmission Channels of Climate Risk
	3.1 Transmission Channels and Mechanisms
	3.2 The Transmission Channels of Physical Risks
	3.3 The Transmission Channels of Transition Risks
	3.4 New “Climate-Driven” Transmission Channels: Impact on Risk Modeling
	3.5 Conclusions
	References
4 Integrating Climate Risk into Commercial Banks Operations
	4.1 The Risk Integration Process: Climate Scenarios and Models
	4.2 The Lending Process
		4.2.1 Retail Counterparties
		4.2.2 Corporate Counterparties
		4.2.3 Micro, Small, and Medium-Sized Enterprises (MSMEs)
		4.2.4 The Role of Product Mix in Corporate Risk Management
		4.2.5 Transfer of the Climate Risk on the Creditworthiness Measurement Systems of the Borrower
	4.3 Climate Risk and the Finance Area
		4.3.1 Treasury, ALM, and Property Portfolio
		4.3.2 Derivatives Desk, Investment Banking, Corporate Solutions, and Trading Portfolio
		4.3.3 Climate Risk and Asset Management
	4.4 Conclusions
	References
5 Insurance Companies
	5.1 Impacts of Climate Change Risk on the Insurance Business
	5.2 The Integration of Climate Change Risk into the ORSA
	5.3 The Impacts of Climate Risk on the Business Model of Insurance Companies
	5.4 Conclusions
	References
6 Governance Implications: The Challenge of Disclosure
	6.1 ECB Expectations on Information and Disclosure
	6.2 Standards of Disclosure
		6.2.1 International Initiatives
			Taskforce on Climate-Related Financial Disclosures (TCFD)
			CDP—Carbon Disclosure Project
			SABS Standards
			SBTi—Science-Based Target Initiative
			NZBA – Net-Zero Banking Association
		6.2.2 EU Initiatives
			NFRD—Non-Financial Reporting Directive—And CSRD—Corporate Sustainability Reporting Directive
			EU Taxonomy—EU Regulation 2020/852
	6.3 Reporting to Management Bodies
	6.4 Communication with the Market and Investors
	6.5 Conclusions
	References
List of Contributors
Scientific Coordinators
AIFIRM Coordinators
Steering Committee
PMO Coordinators—PROMETEIA
References
Index