Descartes Underwriting’s Post

Today on World Environment Day, the United Nations flagship day for encouraging global awareness and action to protect the environment, we encourage you to ask the question: should you incorporate climate change into your credit risk assessment? At Happy Prime, we believe the answer is yes and there are several reasons for why doing so is not only prudent, but also essential for the long-term stability of the financial industry. Find out why here: https://lnkd.in/gSeVhpje #WorldEnvironmentDay #ClimateChange #NewZealandFinance #CreditRiskSpecialists #FinanceInnovation

Today, stakeholders including investors, lenders, and insurers demand organizations quantify climate risks and opportunities. Aligning with the TCFD ensures organizations stay ahead of upcoming climate-related regulatory disclosure requirements and comply with necessary data infrastructure. BSI provides three core services to help organizations address TCFD reporting requirements: climate risk analysis, scenario analysis, and empowering climate resilience.   Get in touch with our experts to learn more: https://bit.ly/3WAJnhU #TCFD #climatereporting #climateriskanalysis #BSIUSA

📉Many financial institutions have pledged to minimise their exposure to #climate transition risks. 💲But moving assets away from sectors with high emissions is sometimes at odds with supporting climate transition investments, as sectors with high emissions – such as utilities and transportation – require capital to invest in greener technologies. ⭐This column analyses the tension between reducing climate transition exposure and realising green transition goals. 👉The authors find little evidence that banks are moving assets out of high-emission sectors, which is bad news for #risk management but good news for climate finance. Vox column by: Galina Hale (University of California, Santa Cruz), Brigid Meisenbacher (Columbia University), Fernanda Nechio (Federal Reserve Bank of San Francisco) Read more here: https://ow.ly/KOXw50TzXns

🌱 We successfully convened the first Climate Risk Focus Group meeting of the year, with a notable participation from 49 representatives from 28 banks globally. The session brought together a wide array of perspectives and experiences, yet highlighted common challenges among banks. Missed it? Join the Focus Group to stay informed▶ https://lnkd.in/gnt8E_Vw We are excited to announce the launch of an exclusive webinar series, offering banks the opportunity to share insights and strategies on integrating ESG and climate risk into credit risk. Stay tuned for more details! #bybanksforbanks #GCDESGClimate #ClimateRisk #focusgroup

Interesting article comparing mispricing of credit risk which ultimately caused the gfc to mispricing of climate risks within the financial system #climaterisk #esg #sustainablefinance

🌍 The re/insurance sector is stepping up to tackle climate risks head-on, joining forces with the UN and wider financial community. UNRC Dirk Wagener emphasizes, "By advocating for policies that incentivise climate resilience... we can create an enabling environment for sustainable finance initiatives."   Together, we're building a more resilient future!   Read more: https://lnkd.in/gx5H-uQw   #ClimateAction #InsuranceInnovation

climate change is a reality and we need to include it in our risk assessment. We already note few insurers starting to use this as a factor. Munich Re supports these initiatives and can be your trusted partner to build on it.

Incorporate climate change into credit analysis for enhanced success in lending. Effective underwriting involves accurately assessing creditworthiness. Our platform addresses the impact of climate change, mitigating risks from increased natural disasters, ensuring more informed underwriting decisions. https://ow.ly/lbWb50QiBO9 #CreditAnalysis #ClimateResilience #UnderwritingSuccess

“The CSRD can be seen as a tick box cost to the business, or it can be seen as something to really drive strategy, attract and retain customers, staff and drive value across the business.“ - Sarah Moran of our Sustainable Futures team talks to Jean Rea about the key challenges for insurers in understanding the potential impacts of climate change. Click here to watch the full episode of #InsideInsurance - https://lnkd.in/dhwE4D5p

“The CSRD can be seen as a tick box cost to the business, or it can be seen as something to really drive strategy, attract and retain customers, staff and drive value across the business.“ - Sarah Moran of our Sustainable Futures team talks to Jean Rea about the key challenges for insurers in understanding the potential impacts of climate change. Click here to watch the full episode of #InsideInsurance - https://lnkd.in/ecCSVyNv