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How climate risk impacts the financial industry - Deep-dive expert interview

Written by Peter-Jan Roose

Last summer, we all witnessed how climate change is starting to impact the operational and financial performance of organizations. The required changes to address climate change are complex, time-consuming, and investment intensive. This emphasizes the crucial role of the financial industry in the transition to net-zero.

Today, I am joined by Harold, a Financial Industry expert, to discuss how the risks of climate change are impacting his industry. Hello Harold, can you briefly introduce yourself?

Hello, my name is Harald Logt. I am a climate change & sustainable finance advisor, supporting both financial services and corporate clients in understanding the risk and opportunities of climate change.

Having worked across Europe in the financial services industry for nearly 25 years made me realize how much the support of financial institutions is needed to enable the transition to a sustainable and low carbon future.

In my advisory work, I aim to support both companies and banks to prepare for and have constructive dialogues on climate change risks and opportunities.

Recently, you have been involved in the latest ECB stress test, targeting the effects of climate risks on the financial industry. Would it be possible to share some information on this new type of stress test?

In September 2021, the European Central Bank published the outcomes of an economy-wide climate stress test focused on climate change. The main reason for this review is that the ECB realizes climate change is likely to impact our economies, businesses, and societies but the risks remain poorly understood.