Wall Street May Be Underestimating an Important Risk Metric
Some of Wall Street’s biggest banks may be underestimating a risk metric that shows how they’ll fare in a world that’s rapidly being transformed by higher temperatures, extreme weather shocks and soon-to-be obsolete business areas.
While banks have started measuring climate risks, they aren’t adjusting their businesses to address the physical disruptions ahead as clients and the wider economy get hit, according to a study by Climate X, a risk data provider whose clients include Legal and General Group Plc, Federated Hermes Inc. and Jones Lang LaSalle Inc. The report focuses specifically on the industry’s adaptation-finance policies and practices.