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By Alina VORONTSOVA Rym KACED, PwC Luxembourg*
Climate risk has swiftly moved to the forefront of strategic discussions within the financial sector, transforming from a niche concern into a central pillar of risk management. The growing interplay of Environmental, Social, and Governance (ESG) considerations—particularly the environmental (E)—is driving regulatory change, investor scrutiny, and operational challenges for financial institutions.
Given the potential impact of climate risks, the companies are expected to integrate it into the risk framework and assess the potential financial effect on the business. In this context, climate risk modelling has emerged as a vital instrument, offering institutions a way to...
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