Mexico’s central bank, UNEP and UNDP call on financial sector to plan for environmental risks

Mexico City - Today, Banco de México and the United Nations Environment Programme (UNEP), with the support of the United Nations Development Programme (UNDP), presented the report "Climate and environmental risks and opportunities in Mexico's financial system: From diagnosis to action," which calls upon Mexican financial institutions to make a collective effort to incorporate environmental issues into their risk assessment and corporate governance strategies, as well as to take advantage of the opportunities that would result from the transition to a low-carbon economy.

The report highlights that climate change and environmental degradation are critical challenges of our time, as they lead to loss of natural capital, ecosystem degradation, lower productivity, and a reduction of the population’s well-being, at both the national and global level.

As part of the Network for Greening the Financial System (NGFS), the central banks along with other financial authorities have become more involved in initiatives geared towards encouraging financial institutions to accurately acknowledge and assess the impact of environmental risks, in view that such phenomena can have significant consequences on credit risk, financial stability, and social development.