Financial Sector on Climate Risks: ‘What We Don’t Know Can Hurt Us’

Being able to plan for disasters means having the right data to start from. For the financial sector, that’s become one of their biggest frustrations. According to a recent survey of 122 financial institutions (including global banks, insurers, and asset management firms), the greatest hurdle toward addressing climate risk impacts is a lack of data:

• 80% said their top concern in transitioning to a net-zero emissions economy was data
• 75% cited difficulty in making qualitative assessments, and
• 62% pointed to insufficient expertise in actions required.

Possibly because of this lack of data, only 40% of those polled agreed that today’s level of risk is expected to escalate over time. Similarly, 43% said implementing a net-zero strategy is the most common challenge to limiting global warming to 1.5°C above pre-industrial levels by 2030, as part of the Paris Climate Accords.