Risk Management Association, Top U.S. and Canadian Banks Form Consortium to Tackle Climate Risk

The Risk Management Association (RMA) announced today that 19 leading banks have formed the RMA Climate Risk Consortium (“The Consortium”), which will develop standards for banks to integrate climate risk management throughout their operations, preparing the industry to help economies transition to a low-carbon future.
“For over a century, RMA has focused on bringing the industry together to overcome complex problems and difficult times,” RMA President and CEO Nancy Foster said. “With the world facing the existential challenge of climate change, it’s more important than ever that banks work together on this issue. With their crucial role in the health of economies and communities, banks will help drive the environmental transition to a greener economy, and the RMA Climate Risk Consortium is leading the charge on this defining issue of our time.”
The Consortium will advance practices for member banks and the broader industry by assessing current efforts and developing consistent taxonomy, frameworks, and standards for climate risk management. Additionally, the Consortium is engaging with regulators and other key policy makers to help inform ongoing policy considerations specific to a changing climate.
The Consortium consists of nearly 19 members to date, including:
  • Bank of America
  • Fifth Third Bank
  • Huntington Bank
  • KeyBank
  • M&T Bank Corp.
  • MUFG Union Bank
  • National Bank of Canada
  • Regions Bank
  • Royal Bank of Canada
  • Silicon Valley Bank, and its parent, SVB Financial Group
  • Truist
  • U.S. Bank
  • Wells Fargo
“As a financial institution, it is critical that we manage and mitigate risk related to climate change. This includes physical risks, transition risks—and opportunities—that will impact communities, the markets, consumer preferences, and regulations,” said Mary Obasi, Bank of America’s Global Climate Risk Executive, Bank of America, and Chair of the Consortium. “In the same way that banks played a key role in providing funding to businesses and communities through the pandemic, financial institutions will continue to be an essential part of—and play a pivotal role in—the transition to a net zero, more sustainable economy.”