Managing Climate Risks

Banks that fail to operationalize climate risks face growing threats to credit quality, profitability, and compliance

Disclosure is not enough. Climate-related scenarios are rarely embedded in credit models, balance sheet steering, or stress testing. Legacy models fail to capture future risks, and missing data undermines effective decision-making.

H&Z offers a structured framework to embed physical and transition risks into credit decisions, collateral valuation, ICAAP, and governance structures.