JPMorgan's Sarah Kapnick notes debt markets now take climate risks seriously
Summary
JPMorgan's Sarah Kapnick highlighted a significant shift in debt markets, which are now taking climate risks much more seriously than they did five years ago. This evolution reflects a broader trend where major banks are increasingly incorporating climate considerations into their risk evaluations and pricing decisions, and are relying on climate scientists to provide insights on physical risks and enhance portfolio resilience for their institutional clients.
Analysis
JPMorgan: J.P. Morgan is a leading global financial services firm with dedicated climate advisory services for clients. The bank integrates climate science into financial strategies through thought leadership and client advisory on risks and opportunities. Its Global Head of Climate Advisory recently commented on the evolving assessment of climate risks in debt markets. Sarah Kapnick: Dr. Sarah Kapnick is the Global Head of Climate Advisory at J.P. Morgan, where she advises clients on climate, energy, biodiversity, and sustainability topics. A former Chief Scientist at NOAA, she applies scientific expertise to finance. In a September 2026 Bloomberg interview, she discussed how debt markets now treat climate risks with greater seriousness than five years prior. Expert Advisory: Major banks are leveraging climate scientists to deliver insights on physical risks and portfolio resilience for institutional clients. Market Evolution: Debt markets are showing greater incorporation of climate considerations into risk evaluations and pricing decisions.
Categories
macro
Related sources
- https://www.bloomberg.com/news/articles/2026-07-19/pension-funds-try-to-come-to-grips-with-scariest-climate-scenario
- https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/sustainable-investing/climate-and-natural-capital-engagement-report.pdf
- https://www.climateandcapitalmedia.com/jp-morgan-becomes-one-of-the-first-banks-to-look-at-climate-tipping-points/
- https://www.bloomberg.com/news/audio/2026-09-22/bloomberg-talks-sarah-kapnick
- https://www.jpmorgan.com/investment-banking/climate-advisory
- https://www.planetarysecurityinitiative.org/news/interview-dr-sarah-kapnick
- https://markets.jpmorgan.com/research/email/scx/7losnck1/GPS-5337228-0/e8ce82bd-006a-48d9-b02b-c4edbd288755
- https://www.cnbc.com/2025/05/31/why-jpmorgan-hired-noaas-sarah-kapnick-as-chief-climate-scientist.html
- https://www.ioes.ucla.edu/person/sarah-kapnick-ph-d/
- https://time.com/collections/time-100-climate-2025/7326527/sarah-kapnick/
- https://www.congress.gov/119/crec/2026/07/21/172/119/CREC-2026-07-21-senate.pdf
- https://en.wikipedia.org/wiki/Sarah_Kapnick
- https://www.reuters.com/world/asia-pacific/jpmorgan-launch-frontier-market-local-currency-debt-index-by-month-end-source-2026-09-14/
- https://www.climatecentral.org/what-we-do/people/sarah-kapnick
- https://www.jpmorgan.com/insights/sustainability/climate/power-rewired-energy-and-geopolitics
- https://www.msci.com/research-and-insights/podcast/sustainable-finance-summit-pt1-sarah-kapnick-and-john-e-morton
- https://www.jpmorgan.com/insights/podcast-hub/making-sense/clean-tech-energy-security
- https://am.jpmorgan.com/content/dam/jpm-am-aem/global/en/sustainable-investing/tcfd-report.pdf