This paper examines the integration of AI's carbon footprint into the risk management frameworks (RMFs) of the banking sector, emphasising its importance in aligning with sustainability goals and regulatory requirements. As AI becomes increasingly central to banking operations, its energy-intensive processes contribute significantly to carbon emissions, posing environmental, regulatory, and reputational risks. Regulatory frameworks such as the EU AI Act, Corporate Sustainability Reporting Directive (CSRD), Corporate Sustainability Due Diligence Directive (CSDDD), and the Prudential Regulation Authority's SS1/23 are driving banks to incorporate environmental considerations into their AI model governance. Recent advancements in AI research, like the Open Mixture-of-Experts (OLMoE) framework and the Agentic RAG framework, offer more efficient and dynamic AI models, reducing their carbon footprint without compromising performance. Using these technological examples, the paper outlines a structured approach for banks to identify, assess, and mitigate AI's carbon footprint within their RMFs, including adopting energy-efficient models, utilising green cloud computing, and implementing lifecycle management.

The Ada Lovelace Institute is an independent research institute, based in the UK and Brussels, with a mission to ensure data and AI work for people and society. Centring those affected by AI, Ada recommends enshrining legal rights for complaint and collective action and giving civil society a voice within standards setting. Ada recommends expanding and reshaping the role of risk in the Act. Risk should be based on'reasonably foreseeable' purpose and extended beyond individual rights and safety, to also include systemic and environmental risks. The Ada Lovelace Institute, has today published a series of proposed amendments to the EU AI Act aimed at recognising and empowering those affected by AI, expanding and reshaping the meaning of'risk' and accurately reflecting the nature of AI systems and their lifecycle.

A new Centre at the University of Cambridge will develop artificial intelligence techniques to help address some of the biggest threats facing the planet. Funded by UK Research and Innovation (UKRI), the Centre for Doctoral Training in Application of Artificial Intelligence to the study of Environmental Risks (AI4ER) is one of 16 new Centres for Doctoral Training (CDTs) announced today. The Cambridge Centre will be led by Professor Simon Redfern, Head of the Department of Earth Sciences. Climate risk, environmental change and environmental hazards pose some of the most significant threats we face in the 21st century. At the same time, we have increasingly larger datasets available to observe the planet, from the atomic scale all the way through to global satellite observations.

The UKRI Centre for Doctoral Training in the Application of Artificial Intelligence to the study of Environmental Risks (AI4ER) will, through several multi disciplinary cohorts, train researchers uniquely equipped to develop and apply leading edge computational approaches to address critical global environmental challenges by exploiting vast, diverse and often currently untapped environmental data sets. Embedded in the outstanding research environments of the University of Cambridge and the British Antarctic Survey (BAS), the AI4ER CDT will address problems that are relevant to building resilience to environmental hazards and managing environmental change. The activities will be focused on two key research themes. These themes will also touch on widely-applicable emerging methodologies (e.g. Students in the CDT cohorts engage in a one-year Master of Research (MRes) course with a taught component and a major research element, followed by a three-year PhD research project.

Funded by UK Research and Innovation (UKRI), the Centre for Doctoral Training in Application of Artificial Intelligence to the study of Environmental Risks (AI4ER) is one of 16 new Centres for Doctoral Training (CDTs) announced today. The Cambridge Centre will be led by Professor Simon Redfern, Head of the Department of Earth Sciences. Climate risk, environmental change and environmental hazards pose some of the most significant threats we face in the 21st century. At the same time, we have increasingly larger datasets available to observe the planet, from the atomic scale all the way through to global satellite observations. "These datasets represent a transformation in the way we can study and understand the Earth and environment, as we assess and find solutions to environmental risk," said Redfern.