We proactively support the transition to a low-carbon economy and have committed ourselves – inter alia – to the Paris Pledge for Action. We emphasize our commitment by promoting green bonds markets and playing a leading role as one of the top European private-sector project financiers of clean energy.
We also assess the potential for climate-related risks to our business. Potential impacts are wide-ranging and include non-financial risks to our offices, staff, and processes in locations that may be affected by physical climate-related risks (e.g. extreme weather events), as well as credit and market risks of exposures to counterparties and assets that could be impacted by transition risks.
We are further developing internal policies and governance to mitigate climate risks. For instance, we have revised our approach to financing the carbon-intensive coal sector, and we seek to gradually reduce our existing exposure, while avoiding financing for new coal expansion. We continue to develop our approach to risk assessment (incl. scenario analysis), management and disclosure of climate risks, and we participate in a number of industry working groups to discuss next steps towards implementation of recommendations by the Task Force on Climate-Related Financial Disclosures (TCFD).