Moreover, only 25% of banks globally have a climate risk model ready. Almost a third (32%) are struggling with the lack of integration of climate risk data with their risk management framework.
Seven in ten banks globally see their ESG (environmental, social and governance) efforts as having a positive impact on their market reputation and credibility, according to research by Avanade and Efma.
Yet, only 53% will be ready to report their ESG progress to regulators in the next six months. Less than one-fifth (15%) have also achieved net carbon zero operations, while 26% say they will be carbon neutral in the next 12 to 24 months.
