Part of a new industry series Financing the Future™: Climate Business Intelligence™ for Financial Services
Regulatory and Disclosure Drivers
The financial services sector is not acting in a vacuum. Regulators and policymakers around the world are reshaping disclosure requirements to reflect the urgency of climate risk. Standards such as the ISSB’s IFRS S2, Europe’s CSRD/ESRS, Canada’s CSDS, and California’s SB-261 mandate that institutions disclose physical and transition risks, as well as their strategies for resilience. These frameworks compel financial institutions to move beyond general statements and instead quantify climate risk in decision-useful terms.
This regulatory shift is driving transparency and comparability. Emerging adaptation finance taxonomies are standardizing how investments in resilience are classified, making it easier for investors to evaluate performance and for markets to channel capital efficiently. For banks, asset managers, and insurers, compliance is becoming a minimum threshold. Stakeholders, from regulators and rating agencies to institutional investors and the public, now expect robust disclosures that reveal not only risks, but also the opportunities tied to financing resilience.
The pressure is intensifying as climate-driven losses mount. Institutions that fail to meet disclosure requirements face not only regulatory penalties but also reputational risks and erosion of investor trust. By contrast, those that integrate climate risk data into financial workflows and report transparently will differentiate themselves as leaders in an increasingly competitive market. Climate Business Intelligence™ provides a pathway for compliance that also enhances decision-making, aligning regulatory expectations with strategic advantage.
Ready to get started? To learn how ClimaTwin can help you assess the physical and financial impacts of future weather and climate extremes on your infrastructure assets, capital programs, and investment portfolio, please visit www.climatwin.com today.
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