Legal & Regulatory News

Climate Financial Risk Forum develops climate scenario analysis tool

The Climate Financial Risk Forum (CFRF) has developed a beta version of its online climate scenario analysis narrative tool to support smaller firms in assessing their climate-related risks and opportunities. The tool generates a summary narrative description of climate-related risks and opportunities for firms based on a set of pre-selected inputs (e.g., business activities models, products, risks of the firm). The narratives draw on data from scenarios developed by the Central Banks and Supervisors Network for Greening the Financial System (NGFS) as at June 2021.

The narrative descriptions are based on current good practice, which will continue to evolve, but do not necessarily represent the view of the regulators and do not constitute regulatory guidance. The CFRF Scenario Analysis Working Group will continue to collect feedback from users on this beta version of the tool up to Q3 2022 and will update the tool to enhance content and reflect the latest NGFS scenarios in Q1 2023.

Click here to access the CFRF climate scenario analysis narrative tool.