The IACPM has published select findings of the 2023 survey on Linking Climate & ESG to Decision-Making and CPM. The survey is part of IACPM’s ESG Climate Risk Series. Globally, 48 IACPM member firms participated.
The survey data shows that progress for the integration of ESG & climate risk criteria into risk management frameworks depends largely on the nature, size, and region of a firm. Still, supporting existing clients in the transition to a less carbon intense business model is the focus of all respondents globally and a large majority already capture climate & ESG risks, either implicitly or explicitly, in client risk rating criteria.
Industry players across sectors and regions recognize the significance of ESG & climate risk for credit portfolios and are capturing, at a minimum, climate transition risk metrics, either qualitative or quantitative, in existing enterprise-wide Risk Appetite Statements (RAS). Some larger banks are incorporating both – qualitative and quantitative – climate transition risk metrics in their RAS while standalone climate & ESG RAS are an exception.