Climate X

The escalating impacts of climate change are heightening insurance challenges in Canada's most vulnerable regions, marked by rising frequencies and intensities of floods, wildfires, and hurricanes. Mitigating the insurance challenges in high-risk areas necessitates a collaborative effort, engaging the insurance sector, government entities, local communities, and private stakeholders in a comprehensive, all-encompassing strategy. The presence of outdated building codes and inadequate infrastructure in high-risk zones, including flood-prone areas and wildfire-susceptible regions, exacerbates vulnerability to natural disasters, underscoring the need for climate-resilient construction practices. The development of innovative, collaborative initiatives, such as advanced data analytics and risk modelling, as well as government-backed insurance programs, can significantly enhance resilience and ensure the long-term sustainability of insurance coverage in Canada's high-risk areas. Full Article 👉 https://bit.ly/4iujr0e #ClimateRisk #Insurance #PropertyMarket #Canada

Growing climate risks are pushing homeowners toward non-admitted policies, with Florida's policy count 73% (2009-2023) and California's transaction volume up 200%. Non-admitted insurers operate with minimal regulation, leading to higher premiums, like $12,172 in Palm Beach, Florida, and no guaranty fund protection if insurers go bankrupt. As major insurers retreat from disaster-prone states, non-admitted policies have become a critical fallback, raising concerns about affordability and the viability of living in high-risk areas. Full Article 👉 https://bloom.bg/3D76Wrf #ClimateRisk #Insurance #PropertyMarket #US

Italy is set to become the first country to require companies to purchase insurance coverage for climate-related risks, including floods and landslides, starting 1st January 2025. Europe's climate-related losses have surged 2.9% annually from 2009 to 2023, with flooding posing the greatest threat to Italy, where businesses affected by floods face a 7% higher risk of bankruptcy and a 5% average revenue decline within three years. To support this initiative, a €5 billion reinsurance fund has been established, but its implementation may be delayed due to concerns over insurer exposure and pricing risks, with European insurers shouldering a substantial 75% financial risk due to climate change. Full Article 👉 https://bloom.bg/3ZgG0wK #ClimateRisk #Insurance #Banking #EU

To all the #banking professionals in ECB-regulated banks: SREP results are out, and we dive deep into what this means to you in a free downloadable at 👉 https://lnkd.in/eqZaV5Ub  

🇪🇺 The European Central Bank #SREP results are out! Here's the recap: 1️⃣ The 2024 SREP average score improved to 2.6, reflecting stronger profitability and better performance in areas like #strategicplanning, #digitaltransformation, and #costmanagement. 2️⃣ Banks made significant progress in integrating #climate and environmental (C&E) risks across all #risk categories, with a strong emphasis on their impact on business models. 3️⃣ EU-operating banks have advanced in integrating climate-related risks into governance and business practices but still face challenges in fully meeting ECB expectations. 4️⃣ A few banks lack key components of effective #climateriskmanagement, leading to ECB enforcement actions. 5️⃣ The ECB warns that banks failing to meet climate risk expectations by year-end will face enforcement, including formal processes, binding supervisory decisions, and possible penalties. 6️⃣ The ECB will maintain close oversight of banks’ progress on climate risks and other priorities from 2024 to 2026 through dialogue and supervisory reviews. 7️⃣ The 2024 SREP has not led to significant changes in banks' scores or overall Pillar 2 requirements, indicating strong #stability in the #banking sector. 8️⃣ Advancing the Banking and Capital Markets Union and implementing Basel III will enhance financial stability and prepare the system to better cope with future challenges. What are your thoughts on the SREP exercise results for 2024? Full PR release 👉 https://lnkd.in/eAJ45chG #ECB #europeancentralbank #srep2024

A recent IFRS report reveals that despite growing pressure from policymakers, less than 3% of companies worldwide provide comprehensive climate-related financial disclosures, as recommended by the Task Force on Climate-related Financial Disclosures (TCFD). While progress is being made, with 82% of companies disclosing information aligned with at least one TCFD recommendation, significant gaps remain in climate risk reporting, hindering investors' ability to assess and price sustainability-related risks. On a positive note, over a thousand companies have adopted International Sustainability Standards Board (ISSB) standards across 30 jurisdictions, representing 57% of global GDP and over half of greenhouse gas emissions, are working to integrate these standards into their regulatory frameworks. Full Article 👉 https://bit.ly/4gbDuyK Full Report 👉 https://bit.ly/41gHxFP PS: If you're looking for an overview of all the 2025 climate-related regulations, reports, and key events, we have created a climate risk calendar for the banking industry. Download it, for free, at https://bit.ly/3Bt8dbF #ClimateRisk #ClimateDisclosure #Finance #Investment

In the Bank of England's recent Financial Stability report, the Bank of England takes stock of how asset-repricing could impact the wider financial system. Looking at climate-induced impacts, the report reveals that residential real estate faces significant climate-related risks, particularly in areas with high flood exposure, which could lead to a 20% devaluation of property value in the most pessimistic climate scenarios, affecting the 1% of properties most exposed to flood risk. Economic and financial losses from climate-related physical risks are escalating and expected to worsen over the next few decades, with significant uncertainty surrounding the scale and timing of these losses. Full report 👉 https://bit.ly/3B5tdp0 PS: If you're looking for an overview of all the 2025 climate-related regulations, reports, and key events, we have created industry-dedicated calendars: • Banking 2025 Climate Risk Calendar 👉 https://bit.ly/3ZkaM7O • Real Estate 2025 Climate Risk Calendar 👉 https://bit.ly/4gsJGmb They're curated by our expert team, and freely accessible to everyone. #ClimateRisk #PropertyMarket #Banking #FinancialMarket #UK

Rory Sampson has joined us as Director of Sales for EMEA & APAC! Rory brings over a decade of experience leading high-impact sales strategies and high-performing teams. His expertise in consultative sales and a proven track record sets him apart as a dynamic leader. Rory’s addition to our team marks an exciting chapter for us and our clients: he's known to build strong client relationships and bring a customer-centric approach to sales, aligning seamlessly with our mission. At Climate X, we focus on understanding and solving the unique challenges the financial services, real estate and asset management sectors face when it comes to climate risk. Rory’s deep expertise will amplify our efforts to deliver the tools and insights they need to thrive in an era where climate risk data is more critical than ever. Welcome to the team, Rory! #climatetech #startup #venturecapital #growth #tech #innovation #climatechange #sustainability #finance #realestate #banking

Climate stress tests are evolving globally, but banks and regulators must move beyond mere compliance and consider the strategic implications of these tests to avoid unintended consequences. The offloading of climate risks by banks can have negative social impacts, such as leaving vulnerable communities without access to finance and insurance, and regulators must ensure that these efforts do not destabilise entire regions. To address these challenges, regulators, governments, and financial institutions must work together to establish frameworks that promote investment in climate adaptation and mitigation, rather than divestment and abandonment, and ensure that climate risk stress testing supports both financial stability and community resilience. Full article 👉 https://bit.ly/3VpG8Zw PS: If you're looking for an overview of all the 2025 climate-related regulations, reports, and key events, we have created industry-dedicated calendars: • Banking 2025 Climate Risk Calendar 👉 https://bit.ly/3D2QHvB • Real Estate 2025 Climate Risk Calendar 👉 https://bit.ly/3BgoYab They're curated by our expert team, and freely accessible to everyone. #ClimateRisk #ClimateStressTest #Banking #Insurance #Investment

How are you staying up-to-date with the complex world of climate-related regulations? 👉 Introducing our free 2025 Climate Calendars for Financial Regulation 📅 Bespoke to the Banking and Real Estate Industries, our 2025 Calendar provides a clear overview of the year ahead, featuring: 🔍 Detailed Monthly Views - Plan effectively with clear, concise monthly overviews. 🌐 Global Coverage - Regulations and events from Europe, UK, USA, APAC, and international bodies. 📚 Expertly Curated - Compiled by specialists in financial regulatzion and climate policy. Get ready for 2025! Download your free industry calendar now: Banking Calendar 👉 https://bit.ly/4iahsOu Real Estate Calendar 👉 https://bit.ly/4gckArE #banking #realestate #2025 #ClimateResilience #climatechange #climaterisk #finance #sustainability #innovation #physicalrisk