Central banks turn to AI for analyzing climate hazards

Central banks have begun utilizing artificial intelligence to gather data for evaluating climate-related financial risks, a move prompted by the anticipated increase in disclosures from banks and other entities. The Gaia AI project, an initiative by the Bank for International Settlements along with other major central banks, analyzes company disclosures on carbon emissions, green bond issuances, and net-zero commitments.

This tool overcomes the challenge of diverse reporting standards, offering a clearer view of climate-related financial risks by focusing on the definitions of indicators rather than their labels, making the addition of new performance indicators and institutions more streamlined. This innovation could potentially lead to Gaia being made publicly available, enhancing transparency in climate risk analysis​ — Reuters

Share this article

Impact Leadership Journal

Impact Leadership Journal

Further Reading
Lorem ipsum dolor sit amet, consectetur adipiscing elit eiusmod tempor ncididunt ut labore et dolore magna

Impact Leadership Journal (ILJ) is your trusted source for knowledge and inspiration, spotlighting innovative impact technology and solutions to achieve a net zero and nature positive future.

Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore