US and Canadian Banks form consortium to help develop climate risk management strategies and standards

Published: Thursday, 13 January 2022 09:26

The Risk Management Association (RMA) has announced that 19 leading banks have formed the RMA Climate Risk Consortium, which will develop standards for banks to integrate climate risk management throughout their operations.

The Consortium will advance practices for member banks and the broader industry by assessing current efforts and developing consistent taxonomy, frameworks, and standards for climate risk management. Additionally, the Consortium is engaging with regulators and other key policy makers to help inform ongoing policy considerations specific to a changing climate.

The initial Consortium members include:

“As a financial institution, it is critical that we manage and mitigate risk related to climate change. This includes physical risks, transition risks—and opportunities—that will impact communities, the markets, consumer preferences, and regulations,” said Mary Obasi, Global Climate Risk Executive, Bank of America, and Chair of the Consortium. “In the same way that banks played a key role in providing funding to businesses and communities through the pandemic, financial institutions will continue to be an essential part of—and play a pivotal role in—the transition to a net zero, more sustainable economy.”