Insights & Publications
© 2018 Debevoise & Plimpton LLP
Financial Sector Facing Increased Climate-Related Financial and Litigation Risk
22 September 2017
View Client Update
The financial sector is facing increased criticism over its management of climate change related financial risk. In the last week, a coalition of investors have written to major banks demanding better disclosure on climate risk in the wake of Hurricane Irma. This follows a landmark court claim filed by shareholders against Australia’s Commonwealth Bank in August regarding its lack of disclosure regarding climate-related financial risk.
These issues have gathered momentum since the adoption of the Paris Agreement on Climate Change and following the June 2017 recommendations of the G20’s Task Force on Climate Related Financial Disclosures.
Whatever the regulatory environment, banks and other financial institutions increasingly need to pay attention to climate risk, particularly given their mid- to long-term lending portfolios. Building climate risk management into existing risk management practices will help inform strategic decision-making and enhance long-term investment value, as well as help manage the emerging litigation risk in this area.
Public International Law
David W. Rivkin
Wendy J. Miles, QC
Paul M. Rodel
View More Authors
EU Anti-Money Laundering Developments: Fifth Directive Published and Sixth Directive Imminent
CFTC Issues Advisory on Virtual Currency Derivative Product Listings
Debevoise Prevails in Precedent-Setting Tax Case at North Carolina Supreme Court
U.S. Sanctions and AML Measures Target Human Rights Abuses and Corruption
UK Modern Slavery Act Transparency Statement
Debevoise Women's Review