Why we should admit that the banking system is robust to climate change
The evidence suggests that climate has little impact on bank financial performance. Why can't the industry accept, at least for now, that it is robust?
People often ask me why I feel the need to point out that banks are quite robust to the challenges of climate change – indeed the question was posed during the livestream Louie and I held just last week. I think most people in the industry and beyond are quite happy to imagine that banks are under imminent threat from global warming, even if this is not really true.
So why do I insist on poking at the bubble that surrounds such a large part of the industry? The reasons are intellectual, emotional and strategic – I want climate change to be addressed and I think the collective delusion created by the bubble is a waste of time and resources.