Thesis title: Sustainable Banking: Risk Management Strategies for Climate Change
This thesis examines the transformative role of sustainable banking in the context of climate
change, focusing on how banks are adapting their risk management strategies to address the
escalating environmental risks. The research underscores the critical need for the banking sector
to transition from traditional financial practices to those that prioritize sustainability and
environmental stewardship. Central to this thesis is the exploration of the evolution of sustainable
banking practices. This includes an in-depth analysis of how banks have historically approached
environmental risks and how this is rapidly changing in the face of global climate crises. The thesis
delves into various risk management strategies adopted by banks, assessing their effectiveness in
mitigating climate-related financial risks.
Furthermore, this research evaluates the impact of global policies and regulations on the adoption
of sustainable practices in the banking sector. It investigates the role of international agreements,
national regulatory frameworks, and institutional policies in shaping the sustainability agenda
within the banking industry.
Methodologically, the thesis employs a mixed-methods approach, combining quantitative analysis
of climate-related financial risks with qualitative assessments through case studies and expert
interviews. This approach enables a comprehensive understanding of the complex interplay
between banking practices and environmental sustainability. The findings of this research are
expected to provide valuable insights for banks, policymakers, and stakeholders in the financial
sector. By highlighting innovative strategies and best practices in sustainable banking, the thesis
aims to contribute to the ongoing discourse on how the financial sector can effectively respond to
the challenges posed by climate change, ultimately promoting a more sustainable and resilient
global economy.