Climate Models Without Data: How Banks Are Risking the Future

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Banks Are Gambling on Climate Risk Models with Flawed Data

At CeFPro’s recent Sustainable Finance conference, SMBC's modeling team warned that banks face severe challenges in sourcing usable data for climate risk modeling. AI may offer game-changing tools, but without strong governance, it introduces its own risks. As CSRD compliance looms, institutions must overhaul how they manage ESG data.

Apr 04, 2025

Ying Poikonen, Executive Director, Head of Modelling Group EMEA, SMBC

Jing Zhang, Vice President, SMBC

Tags: ESG and Climate Risk

Banks Are Gambling on Climate Risk Models with Flawed Data

The views and opinions expressed in this content are those of the thought leader as an individual and are not attributed to CeFPro or any other organization

Banks struggle to model climate risk due to poor quality and inconsistent data.
SMBC experts explained how AI could automate and validate ESG data. They also emphasized governance and auditability.
CSRD compliance demands robust, real-time, and verified data strategies, not just vendor solutions.
Internal teams and external consultants are key to building trustworthy AI frameworks and climate models