Sydney, Australia – February 22, 2026 – Banks are increasingly assigning responsibility for climate risk to their Chief Risk Officers (CROs), but a new benchmarking exercise reveals a fragmented approach to implementation, with significant variation in team size and a lack of clear organizational ownership.
The findings, released today by Risk.net, indicate that while 81% of banks identify their CRO as accountable for climate risk, the practical application of this accountability differs widely. The median size of dedicated central climate risk teams is just four full-time employees, though some institutions report teams as large as 50, while others have none at all, according to the benchmarking data.
This disparity suggests a fundamental challenge in translating high-level responsibility into effective action. The report highlights a situation where “everyone owns climate risk – which often means no-one does,” and in some cases, literally no one is assigned to the task.
The ambiguity extends beyond team size. The benchmarking exercise, Risk.net’s first of its kind, reveals a lack of clarity regarding where climate risk management sits within the broader organizational structure. Responsibility is often shared between risk, sustainability, and business units, potentially leading to duplicated efforts or, conversely, gaps in coverage.
The increasing focus on CROs comes as climate risk is recognized as a systemic threat to the financial system. Recent research indicates that cross-industry spillover effects of climate risk are amplified during extreme weather events and the implementation of climate policies, further emphasizing the need for robust risk management frameworks.
Despite the growing awareness, the Risk.net data suggests banks are still grappling with how to effectively integrate climate risk into their existing risk management processes. The study does not detail specific methodologies employed by banks, but the variation in team size suggests a wide range of approaches, from dedicated, centralized teams to more ad-hoc, decentralized models.
Risk.net subscribers have access to detailed data from the benchmarking exercise. The organization is offering email updates for those interested in following the evolution of bank climate risk practices.
