Even then leadership will still be needed. Our survey of New Zealand insurers and banks last year found broad concern that climate change exposed the financial system to significant risk. But, we disappointingly found scant evidence that the climate risk concerns are influencing daily business decisions. The lack of action may relate to the partial awareness.
Only 60 percent of surveyed banks and one third of insurers disclose some climate-related information.4 This creates inconsistent information and comparability, leading to uninformed decisions. Hence, we support the mandatory disclosure of climate risk, especially one that is collaborative in approach with industry.