Module 1 – Mapping climate risk management across the typical credit cycle
In this toolkit, the credit cycle refers to the sequence of origination, due diligence and approval, and ongoing monitoring, all underpinned by robust governance, strategy and portfolio management. Diagram 3 maps the recommended climate risk management measures with each stage of the credit cycle.
Climate risk integration within credit cycle
An overview of climate risk-related activities during the credit cycle.
CLICK TO VIEW DIAGRAM 3: Mapping climate risk management within financial institutions across the typical credit cycle.
Within a typical credit cycle, climate risk management processes generate new information that feeds into later decision-making stages. In Diagram 4, dotted lines represent feedback loops, while solid lines show the sequential progression through each stage of decision-making.
CLICK TO VIEW DIAGRAM 4: Information flows with a typical credit cycle.