Climate Scenario Design and Stress Testing

It is a formidable, global challenge to transition to a sustainable economy before time is running out. And banks have an important role to play in this transition. At the same time, banks need to integrate climate related and environmental (C&E) factors into their existing risk frameworks. Part of this concerns stress testing and scenario analysis, which will play an essential role in monitoring the exposure of C&E related risks on the bank’s portfolio. Efforts in this area consist of designing C&E scenarios, translating C&E scenarios to financial impacts, including C&E in you stress testing framework, etc. Recognising the challenges in this area, Zanders is hosting a roundtable. The focus of the roundtable will be to share experiences and ideas on climate scenario design and stress testing.  

If you are interested, please reach out to Miguel Manzanares at m.manzanares@zandersgroup.com