Climate stress testing an emerging challenge for banks worldwide
United States, Dec. 4 -- As financial institutions worldwide grapple with how to turn climate-related risks into credible stress testing scenarios, new guidance on climate stress testing for banks offers a timely roadmap.Climate Stress Testing Methodologies: Current Practices, Challenges, and the Road Ahead - a report by the United Nations Environment Programme Finance Initiative (UNEP FI) and data and AI leader SAS - is based on input from 21 global banks. It benchmarks current practices; identifies gaps in modeling, governance and infrastructure; and offers practical advice for integrating climate stress testing into core risk frameworks. What is climate stress testing?Climate stress testing supports an organization's resilience to climat...
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