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Mark Carney: banks should stress test clients for climate risk

Bank of England governor says banks should find out how the companies they lend to are ‘managing current and future climate related risks’

The Governor of the Bank of England, Mark Carney
The Governor of the Bank of England, Mark Carney Photo: Getty Images

The governor of the Bank of England has said banks should stress test the climate change risk taken on by organisations they lend to, as pressure mounts on financial companies to account for their full impact on the environment.

Mark Carney, in a speech delivered in Tokyo on October 8, said “banks will need to establish how their borrowers are managing current and future climate-related risks”.

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