The BCRA promises a survey to evaluate the exposure and resilience of the financial system to the risks linked to climate change

Summary:

The Banco Central de la Repu00fablica Argentina (BCRA) is launching a pioneering data collection process to evaluate the exposure and resilience of the Argentine financial system to climate-related risks. This initiative is aligned with global assessments and will focus on the country's main financial institutions, as well as a sample of over 1,000 companies that receive financing from the system. The first stage of the process will collect information on the geolocation of companies' main activity centers to analyze their proximity to areas with different levels of exposure to physical risk factors, such as floods, droughts, and heatwaves. The second stage, to be implemented in the coming years, will request data on companies' greenhouse gas emissions to assess the transition risks they face. This effort is part of the agreements between financial sector regulators to promote sustainable finance in Argentina and is supported by recent studies on sustainable finance and climate change.