📉 Large European banks could face a threefold increase in credit losses by 2045 in an adverse climate scenario, according to modelling by Scope Ratings. Southern Europe, with its heightened vulnerability to climate impacts, is particularly at risk. 🌪️ Under a “disorderly” scenario, where climate policies are delayed, Scope projects the cost of risk could rise to 97 basis points — nearly triple the base case of 34bp for 2045-50 if policies are implemented early. Southern European banks are most exposed, with median additional credit losses of up to 94bp, compared to just 6bp for northern Europe. 🤝 “Banks must adopt credible climate risk strategies and work closely with clients to mitigate these risks,” notes Pauline Lambert, executive director for financial institutions at Scope. Proactive climate risk management has never been more critical. Read more and see the data here: https://on.ft.com/4jr82Pt