Only a small percentage of financial institutions are integrating all risks related to greenhouse gas emission reductions and climate change adaptation into their corporate risk management systems. This conclusion comes from a survey conducted by the Bank of Russia to evaluate compliance with its recommendations.
The survey indicates that banks are more engaged in the climate agenda compared to non-governmental pension funds and insurance companies. Some banks have already started including relevant terms in loan agreements.
According to the Bank of Russia, major non-financial companies are improving their disclosure of climate-related information and setting more ambitious targets. However, these environmental targets often remain formal.
As Russia's trading partners continue transitioning to a low-carbon economy and introduce regulations affecting international trade, the Bank of Russia plans to detail methodologies for accounting for climate risks. It will also develop recommendations on climate risk management for banks. Additionally, there is a plan to continue stress testing for climate risks and encourage financial institutions to assess these risks independently.