The UN Environment Programme Finance Initiative (UNEP FI) has unveiled its new Risk Centre which assists financial institutions in navigating sustainability risks effectively. This unique resource comes in response to the pressing need for a comprehensive and integrated approach to tackle sustainability challenges such as climate change, biodiversity loss, and pollution.    

The Centre, available exclusively to UNEP FI’s members, offers access to a centralized platform of resources and guidance tailored specifically for risk professionals. It supports UNEP FI’s existing work and initiatives to allow its membership to address these interrelated risks.  

“Building out UNEP FI’s existing risk expertise, the Centre is an additional resource to help UNEP FI members tackle interlinked sustainability risks,” said Eric Usher, Head of UNEP FI. “As well as providing access to UN science-based expertise, the Centre will provide the opportunity to engage with a broad spectrum of leading external experts, regulators, modellers and data providers on technical risk-related elements of new regulations and standards, helping UNEP FI members assess and manage these new and emerging risks that can be financially material.” 

Initially focusing on climate and nature risks, including support for frameworks such as the Taskforce on Climate-Related Financial Disclosures (TCFD) and Taskforce on Nature-Related Financial Disclosures (TNFD), the Risk Centre will later expand its scope to cover other sustainability risks such as pollution and social issues.   

The Centre offers four ways for UNEP FI members to benefit: a programme of working groups, technical skill-building workshops, monthly webinars, and a knowledge hub to bridge theory and practice in risk management.  

UNEP FI members are working to align their businesses to sustainability goals through commitments to implement the Principles for Responsible Banking and the Principles for Sustainable Insurance. The new Risk Centre will help financial institutions fufil those commitments by providing access to technical expertise on sustainability risk topics. It will focus on risk elements including stress testing, the risk regulatory landscape, social risks, and risks related to waste, pollution and resource use and provide guidance and case studies on how and where risk analysis fits into their operationalisation of the principles. 

UNEP FI has been working with banks, insurers, and investors on risk since 2017 to develop approaches and resources to help financial institutions identify, measure, disclose and manage climate-related risk, in line with the Financial Stability Board’s TCFD recommendations that are now included in the International Sustainability Standards Board’s standards. 

Click here for more information and find out how to participate.