The survey conducted by the United Nations Environment Programme Finance Initiative surveyed 78 financial institutions and indicates that 38% of banks in Latin America and the Caribbean consider climate change in their risk management. The analysis also indicates that 24% of those surveyed have a climate risk assessment and disclosure policy, and 69% indicated that the economic sector seen as most exposed to climate risks is agriculture and forestry, with the power generation sector coming in second, with 44%.
According to a UN statement, the report "notes that the banking sector in Latin America and the Caribbean has a significant opportunity to advance the assessment of climate change risks in its plans and strategies, with the aim of increasing its resilience and better preparing to support the transition to a low-carbon economy." "Assessing climate risk is crucial to aligning banking sector portfolios with a sustainable and equitable global economy in the 21st century, which becomes even more relevant today as we need to rebuild considering the effects of the COVID-19 pandemic," said Eric Usher, Director of the United Nations Environment Programme Finance Initiative (UNEP FI).
