The bank has entered a partnership with the Centre for Climate Finance and Investment at Imperial College Business School, focusing on innovative solutions to integrate climate risk identification and management into financial decision-making over the next four years.
This collaboration seeks to address the complexities between green policies and business models, emphasizing the need for businesses to enhance their resilience against climate-related risks. Additionally, the business school will offer comprehensive education and training programs, utilizing digital learning tools to raise awareness about climate change and its associated commercial risks.
Mark Smith, Chief Risk Officer at Standard Chartered, stated, “Climate change is reshaping our approach to business and risk management. By accurately quantifying these risks, we improve our ability to develop effective societal responses.”
Assessing climate risks has become one of the most pressing obstacles in sustainable finance, primarily due to inconsistent reporting standards that hinder effective comparisons of products marketed as ‘green.’
Dr. Charles Donovan, Executive Director of the Centre for Climate Finance and Investment, emphasized the significance of this partnership: “It represents a crucial advancement in helping major financial institutions and corporations navigate climate risk management.”
He added that Standard Chartered’s involvement underscores the bank’s dedication to addressing these challenges and acknowledges the urgency and scale of the issues ahead.
In December, Standard Chartered published its Taskforce on Climate-related Financial Disclosures (TCFD) report, which detailed the strides made in aligning its lending practices with the objectives of the Paris Agreement.
Looking ahead, Finextra Research and ResponsibleRisk will delve into sustainable finance in investment and asset management during the upcoming SustainableFinance.Live Co-Creation Workshop in March 2020. Interested parties are encouraged to register for this event, which will explore sustainability demands, challenges for sustainable investment, and strategies for achieving the UN’s Sustainable Development Goals by 2030.