Can climate change be fought through smart financing? The goal of Net Zero Emissions by 2050 requires massive investment: and Green RWA is convinced that banks have a vital role to play. In their view, economic and environmental goals are not opposed, but rather can work hand in hand. What’s missing today is a model for banks to assess economic and climate-related risks and rewards. With such a tool, banks can make financially sound lending decisions that drive the greatest positive environmental impact.

Green RWA announced today that FORRS has joined Green RWA as its first corporate member. FORRS, a Germany consultancy, will support Green RWA, advising banks on climate risk assessment, as well as implementing appropriate models and identifying the relevant data sources to feed these models.

Stefan Weichert, Director of FORRS, said, “We are impressed by the vision of Green RWA and the mathematical risk model they are building with the help of Professor Josselin Garnier. We are very much looking forward to co-operate with Green RWA in Germany and to support their mission in our financial community.”

Luc Olinger, Director of FORRS, added, “Financial institutions will change their investment behaviour in the near future towards a strong ESG (Environmental, Social, Governance) orientation. With their approach, Green RWA addresses the most relevant challenges for banks in their transformation towards sustainable lending behaviour. We anticipate great demand for implementing ESG-compliant asset allocation strategies.”

Olivier Vinciguerra, Chair of Green RWA said, “We believe that banks can and will finance the green transition, and that innovative climate risk models are needed for banks to assess their risks and reorient their loan books. One of Green RWA’s goals is to deploy our model with the support of local consultancies in every country. We are delighted to have FORRS and its team of experts in banking business matters and technology deployment supporting us with German market outreach.”

About Green RWA

Green RWA (Risk-Weighted Assets) is a non-profit association, rooted in the belief that climate transition will require the entire financial community to work in conjunction. The investments in OECD has identified to successfully achieve Net Zero Emissions by 2050 require banks to accelerate the green transition. Green RWA is committed to this goal by working with financial institutions to optimise their climate risk capital budget. Rigorous analysis and open collaboration as well as employing open financial modelling can help institutions meet this goal.

About FORRS

FORRS Partners is an expert consulting firm in the financial, energy and commodities industries. Founded in 2015, FORRS focuses on mission-critical projects along the complete trading value chain to service clients who are actively participating in all kinds of markets.