Climate-related financial risks
Competence frameworks for the built environment – Core criteria for sustainability competence - Code of practice , Version 3, published by the Edge for the Construction Industry Council in February 2025, defines climate-related financial risks as: ‘a set of potential risks that may result from climate change and that could potentially impact the safety and soundness of individual financial institutions and have broader financial stability implications for the banking system. These risks are typically classified as physical and transition risks.’
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