11th April 2024 – Banking & Payments Federation Ireland (BPFI) today hosted the launch of a report on best practice in climate-related risk management within financial services in Ireland, produced by the Climate Risk and Sustainable Finance Forum (Climate Forum), a consultative forum established by the Central Bank.
The report examines emerging good practice across the financial services sector from both a domestic and international perspective, providing insight to the approaches to climate risk management adopted by different firms and addresses the emerging challenges and opportunities arising in the urgent response to climate change.
Opening the event, Sharon Donnery, Deputy Governor of Financial Regulation with the Central Bank of Ireland stated: “One of the key aims of the Climate Forum is to progress our understanding and management of the climate risk through collective sharing of information, and development of optimal approaches to address this universal and ever-growing risk. I am glad to see this report brings processes and expertise from all sectors and in addition, not only domestic financial market participants but also international firms based here. This willingness to share and collaborate strikes me as a sign of growing maturity with which we all consider climate risk and accept it as an unavoidable risk that transcends all borders and markets. While this Report is solely the work of the Climate Forum and should not be perceived as Central Bank of Ireland guidance, I very much welcome its publication today.”
Louise O’Mahony, Co-Chair of the Climate Forum’s Risk Management Working Group and Head of Sustainable Banking, BPFI added: “The pace and scale of climate change and global warming that we are now witnessing transcends markets, sectors and borders so cross-sector, border and disciplinary collaboration has never been more important. The Climate Forum provides a great opportunity for cross-sectoral collaboration and education on the critical topic of climate and environmental risk management in financial services. Today’s report from the forum provides a snapshot of how the financial services industry is playing their part and actively supporting the transition to a sustainable future, both within their firms and by supporting their customers and clients in their own sustainability journeys.”
“The report also delves into some of the challenges faced by the industry, including the complex nature of sourcing and applying data, and how stakeholders are addressing the emerging risks in the medium to long term, whilst mitigating its impacts in the short term. We hope that the publication will act as a guide to support financial institutions in preparing for the risks and opportunities arising from the growing climate challenge.”
The Climate Risk Management report was compiled by the Risk Management Working Group, which comprises representatives of asset management firms, domestic and international banks, insurers, intermediaries, credit unions, trade associations, the consulting firm EY, and the World Bank, with representatives of the Department of Finance, the Central Bank of Ireland and NTMA participating as observers. The co-chairs are Louise O’Mahony, Head of Sustainable Banking, Banking & Payments Federation and Andrew Garner, CAO, Invesco.
Download the Climate Risk Management Report here.
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Note to editors
The Climate Risk and Sustainable Finance Forum (Climate Forum): is a consultative forum. It aims to build a shared approach between the financial sector and Central Bank of Ireland in understanding and managing the financial risks and opportunities posed by climate change.
The Risk Management Working Group: was established by the Climate Forum to identify approaches to climate-related risk management within financial services in Ireland, and to help leverage the opportunities presented by the evolving climate agenda. The Working Group comprises representatives of asset management firms, domestic and international banks, insurers, intermediaries, credit unions, trade associations, the consulting firm EY, and the World Bank, with representatives of the Department of Finance, the Central Bank of Ireland and NTMA participating as observers.
