Bank of Russia estimates impact of climate risks on banks and Russia’s major companies
The results of stress testing demonstrate that banks should comply with the regulator’s recommendations to organise the management of climate risks. The above includes helping clients from brown sectors of economy rearrange their business models amid energy transition and diversify their own loan portfolios.
If companies do not proactively adjust to the energy transition, the financial condition of a third of the analysed companies in the real sector will deteriorate over the horizon of
The Bank of Russia will continue assessing the possible consequences of the materialisation of climate transition risks. In particular, in 2024, the Banks of Russia plans to:
— conduct stress testing of climate risks taking into account the estimates of major financial and non-financial companies and competent agencies;
— launch a regular survey of banks and other financial companies as to whether such banks and companies are exposed to climate risks and how they manage such risks.