Beyond transparency: Getting serious about greening Europe's financial system
Hertie School. Jacques Delors Centre, Berlin ; Bertelsmann Stiftung, Gütersloh
Bertelsmann Stiftung - Gütersloh
2021
7 p.
environment ; financial sector ; climate change ; risk assessment ; sustainable development ; investment
Policy Brief
8 February 2021
Financing and monetary policy
English
Bibliogr.
"The financial sector must divest from unsustainable business. This is imperative to achieve a climate-neutral economy and to safeguard financial stability. The European sustainable finance regulatory agenda of 2018 launched important initiatives that increase transparency on climate risks. Now it is time to move to the second stage and incorporate climate risks in the risk models and capital requirements of banks, pensions funds and insurance firms. This will reduce their exposure to potential losses from climate risks and at the same time render sustainable investment alternatives more attractive."
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