Sustainability risks have become a mainstream prudential concern for the banking industry. Climate shocks, nature loss, pollution, and social pressures are affecting markets, asset values, and financial stability, and regulators worldwide are tightening expectations for how banks identify, measure, and manage these risks.  

This new report, aimed at risk professionals at banks, assesses the extent to which sustainability risks are being integrated by the global banking sector. It draws on three evidence streams: a consultation with 28 signatories to the Principles for Responsible Banking across five regions conducted in April and May 2026; stocktakes and thematic reviews published by banking supervisors and international bodies; and industry surveys published between December 2023 and May 2026. 

Over ninety percent of the consulted banks believe current practices would benefit from a structured reference framework. The UNEP FI Risk Centre’s forthcoming Approach to Sustainability Risk Integration is intended to meet that demand, setting out a coherent method for integrating sustainability into prudential risk management and how this can be operationalized. The first part of the approach will be launched soon – get a preview of what’s coming here.