Some impacts of global warming on critical infrastructure protection - heat waves and the European financial sector

Abstract

Global warming is one of the hottest topics today, impacting every aspect of our life on Earth. Surprisingly, the effects of climate change on critical infrastructure protection have not been studied extensively. This paper i) examines three challenges raised by heatwaves: managing environmental risks; failure of partners and supply chains caused by extreme weather; operation during heatwaves, and ii) gives an overview of the responses of the European financial sector. By contributing to the growing research area of global warming, this study provides an opportunity to understand some of the climate risks better and offers some insights into the climate strategy of the European banking industry. Research data is drawn from two primary sources. Relevant literature was explored, and current supervisory recommendations were examined along with the results of the European financial sector's first climate risk stress test.