Climate risk in financial services

This is a preview article on climate change risk for insurers that was the result of a round-table held at the ICAEW featuring members from banks, insurance companies and independent experts.

Looking at practical examples interested professionals realise the task at hand is not insurmountable but a process that needs to be started and progressively expanded.

Climate change related financials risks will have to be embedded in financial services firms’ strategies and risk management and disclosed in line with the TCFD recommendations.

Climate change is firmly on the board agenda, but it can be challenging to ask the right questions about new rapidly changing risks. ICAEW’s Financial Services Faculty and the Sustainability team highlight 10 questions non-executive directors can ask to get a robust conversation going and help drive strong governance.