The financial institutions in the G20 economies have nearly USD 22 trillion of exposure to carbon-intensive sectors, of which 60 per cent are with banks, 30 per cent with asset managers equity holdings and the rest are weighted towards cash and Government securities, according to a report.
While banks' exposure is to the tune of USD 13.8 trillion, asset managers' equity holdings are worth USD 6.6 trillion, and the remainder USD 1.8 trillion are in cash and government securities, Moody's Investor Service said in its report.
By sector, manufacturing, power and other utilities, transportation and oil and gas feature heavily among the G20 financial institutions' top carbon-intensive exposures, the report said, adding by region, Asia leads with USD 9 trillion followed by the Americas (USD 8 trillion) and the EMEA taking up USD 5 trillion.
The report did not offer country-specific numbers. For banks, the decarbonization task compounds many of the industry's other risks from transformative forces like digitisation and cyber risks.
