This research examines how global systemically important banks (G-SIBs) are managing financial risks associated with climate change, focusing on adaptation and mitigation strategies. Using a mixed-methods approach, the study analyses data from 8 G-SIBs over the period 2016–2020 namely, JPMorgan Chase, Barclays plc, BNP Paribas, China Construction Bank (CCB), Goldman Sachs, Industrial and Commercial Bank of China (ICBC), Union Bank of Switzerland (UBS) and Mitsubishi United Financial Group Bank (MUFG). The research is done by combining quantitative analysis of financial performance and carbon intensity with qualitative assessment of climate risk disclosures and case studies. Key findings include a significant negative relationship between Carbon intensity measured in tonnes of CO2 per full-time employee (FTE) and Return on Equity (ROE) measured as a percentage, suggesting that banks with lower carbon intensity tend to perform better financially. This relationship persists across different model specifications, including panel data regression and dynamic panel models. The study also reveals a general decrease in carbon intensity across the sample from 2016 to 2020, indicating growing efforts by banks to reduce exposure to carbon-intensive sectors (Ehlers et al., BIS Quarterly Review, 2020). A similar relationship is observed between Carbon Intensity and the Debt-to-Equity Ratio, indicating that banks with higher carbon intensity tend to have lower leverage. This research contributes to the academic literature by providing empirical evidence on the relationship between climate risk management and bank performance. It offers actionable insights for bank managers on effective climate risk management strategies and evidence-based recommendations for policymakers and regulators. The findings underscore the growing importance of climate risk management in the banking sector and its potential implications for financial performance, systemic stability, and the transition to a low-carbon economy.