| Abstract [eng] |
Structure: 69 pages, 12 figures, 26 tables, 71 references, and 6 appendices. Nowadays, climate change is one of the leading world problems and the banking sector is starting to pay more attention to it. That shows that one of the ECB's key objectives for 2022 is to address climate change. The first part of the paper looks at the changes and impacts of climate change. It also looks at how climate change affects finance and the economy. It examines the main risks associated with climate change and the banking sector's contribution to climate change mitigation. The main objective of this paper is to develop a methodology to assess the banking sector by analyzing the aspects of climate change, climate-related risks, and the actions of the banking sector. The research methods used in this work are quantitative data analysis, correlation, and regression analyses. The study aims to analyze the banks' GHG data to determine whether there is a relationship between changes in GHGs and bank profitability. It will also examine the information on climate change and sustainability in banks' reports. The research study shows that European banks have the lowest GHG performance, are the least risky, and have the highest ESG and MSCI ratings. The highest GHG ratios are found in N. American banks, which are the riskiest and do not have high ratings. Although not low in GHG performance, Canadian banks are significantly better than N. American banks, are less risky, and have average ratings. A link between GHGs and bank earnings has also been established. The projections showed that the lower the GHG ratio for European banks, the higher the earnings but Canadian banks in reverse. The findings have answered the questions raised in the first part of the paper and have led to proposals to increase the banking sector's involvement in the climate change mitigation process. |
