Climate-related risks pose inevitable threats to investors and the assets in which they invest. Institutional investors have become increasingly concerned about-climate-related risks, but physical risks, which represent the direct physical impacts from climate change, are not well understood.

Private sector banks are facing political, market, and societal pressure to direct finance towards low carbon, sustainable development. One way they’re signaling their response is through sustainable finance commitments: publicly-made, time-bound commitments to provide or facilitate capital for climate and sustainability solutions.