Climate Risk

We consider climate risk an amplifier of existing risk types, and consider its impact within our overarching risk management framework.

Climate-Related Risk

Climate-related risks are treated as risk drivers that are embedded in PNC’s Risk  Taxonomy and aligned with traditional categories such as credit, market, liquidity and reputational risk. We consider the potential physical and transition risk impacts on PNC, including collateral value loss, geographic credit concentrations in areas  exposed to natural disasters, customer preference shift, technology improvements and regulatory change, and the potential for increased operational losses from acute and chronic weather events.

We consider climate risk an amplifier of existing risk types, not as a new risk type. As such, we consider the impact of climate-related risks within our overarching strategic vision to set concrete, incremental and achievable goals. This is done while remaining responsive to forward-looking external factors such as future regulatory guidance; competing demands from governments, investors and public policy organizations; evolving best practices for incorporating climate into our ERM Framework; and assessing the carbon intensity of our portfolio in ways that support sound decision-making.  

Climate Risk Committee

Our Climate Risk Committee oversees the integration of climate-related risks into the Enterprise Risk Management (ERM) Framework. 

Committee members are a cross-functional group of internal stakeholders with key responsibilities, including: 

  • Review, recommend and/or approve the ERM Framework enhancements to integrate climate-related risks 
  • Escalate climate-related risks from across the organization to assess an aggregate view of climate-related risks 
  • Review, recommend and/or approve the development and implementation of a sound, repeatable process to comply with regulatory requirements related to climate