On 10 September 2020, the Central Banks and Supervisors’ Network for Greening the Financial System (NGFS) issued the following publications:

  • The Overview of Environmental Risk Analysis by Financial Institutions. This report provides wide-ranging examples of how environmental risks translate into financial risks, and an in-depth review of the tools and methodologies for environmental risk analysis (ERA) used by financial institutions including banks, asset managers and insurance companies. The report also identifies the major barriers to wider adoptions of ERAs by the financial services industry, including the lack of awareness of environmental risks, inadequate data, incomplete methodologies and limited capacity.
  • NGFS Occasional Paper “Case Studies of Environmental Risk Analysis Methodologies”. This paper presents a more detailed and in-depth discussion of the tools and methodologies for ERA through case studies conducted by over 30 organizations. This paper aims to inform the financial community of the ERA methodologies and inspire interested institutions to further develop or enhance them.