Source:
https://scmp.com/business/banking-finance/article/3179026/climate-risks-could-cut-profits-hsbc-standard-charteredBanking & Finance
Climate risks could cut profits at HSBC, Standard Chartered and other banks by 15 per cent, Bank of England says
- British banks could suffer US$281 billion in credit losses by 2050 if the transition to net zero is delayed a decade, stress test by central bank shows
- Insurers could see their total market value shrink by 15 per cent under the worst-case scenario
The Bank of England in the City of London. The central bank conducted a stress test on the effects of failing to address climate risks on 19 British-based banks. Photo: EPA
HSBC, Standard Chartered and other British-based banks and insurers could see their annual profits fall by 10 per cent to 15 per cent if they fail to address climate risks in a timely fashion, according to a stress test conducted by the Bank of England.
The British banking industry could suffer about £225 billion (US$281 billion) in credit losses by 2050 if the move to a net-zero economy – one that cuts greenhouse gas emissions to close to nothing – is delayed by a decade, the central bank found in its first stress test examining the financial risks of climate change.