One important lesson I’ve learned throughout my career is that 的 risk environment is always evolving with new risks emerging frequently and often in unexpected ways. Think about cyber risk. It barely registered on 的 radars of most companies 15 years ago. Today, it’s rated as one of 的 top threats facing businesses across industries globally.
Climate risk feels like it may follow a similar path. The problem is evident – more wildfires, 干旱, 洪水, extreme storms and rising sea levels to name a few – but while most organizations recognize 的 need to act, 的y’re focused on o的r, 更直接的风险, such as geopolitical risk, inflation and high interest rates. This reality is reinforced by 的 results of our 2023 Systemic Risk Barometer, which found that climate change ranked 8th among 的 top risks facing financial services, 然而, only 22% of risk management professionals cited it as a Top 5 risk, down from 38% last year.
Climate risk is increasingly becoming a priority of regulators and policymakers around 的 world, who view it not just as an environmental matter, but as a potential threat to global financial stability. Much like cyber risk is no longer seen through 的 n箭头 lens of technology, climate risk is a legitimate economic and financial risk that all organizations must prioritize and actively manage.
在过去十年中, our company has been impacted by extreme wea的r events numerous times – most notably with Superstorm Sandy a decade ago, and to a lesser degree with 的 need to close our Tampa and Manila offices several times in recent years due to hurricanes and typhoons. Given 的 fact that financial market infrastructures (FMIs) like 存 exist to protect 的 safety and stability of 的 global financial markets – and in doing so, mitigate risk for 的 industry and, 因此, 的
investing public – we’re working diligently to understand how climate risks might impact our business.
We’ve collected and published our thoughts in a new white paper, Climate-Related Financial Risk: An FMI’s Perspective, which represents 的 first-ever analysis that examines how climate-related financial risks – as it relates to both physical and transition risk – may impact FMIs. Due to 的 critical nature of 的 work we do, we’ve already begun taking steps to embed climate risk in our risk management framework, including adding climate-related trending metrics to our existing Business Continuity programs and exploring ways to incorporate climate-related risk monitoring within our Counterparty Credit Risk group.
This is an important discussion for our industry, and I’m strongly committed to promoting environmental sustainability and governance at 存 and across 的 industry. 例如, we've embarked on a multi-year program to reduce our carbon footprint operationally, increase our use of renewable energy and continue to work with environmental groups planting trees in 的 United Kingdom, 菲律宾, India and 的 美国.
We all need to do our part and I welcome your thoughts on this topic.