How Climate Risks Are Shaping the Landscape for Asia-Pacific Financial Institutions

As the damage from extreme weather events becomes more apparent, the urgency increases for companies to understand, measure and manage the risks they face from climate change and the interlinked crisis of biodiversity loss. Data can help financial institutions make informed decisions about how to develop effective sustainability strategies to reduce their climate and environmental risks.

This report utilizes data from S&P Global Sustainable1 to understand the physical risks of climate change and how these will impact financial institutions in the Asia-Pacific region in the decades to come. The findings reveal that only 13.4% of financial institutions in the Asia-Pacific region have net-zero targets, lower than 43.5% in Europe, 15.3% in Latin America and 15% in North America. It provides a detailed analysis of how financial institutions can enhance their resilience to climate risks and support the transition to a low-carbon economy. Focusing on integrating climate risk into financial decision-making processes, the report sets a new benchmark for the sector and helps financial institutions align their operations with global sustainability goals.