Legal & Regulatory News

FSB and NGFS publish joint report on initial findings regarding scenario analyses undertaken to assess climate-related financial risks

On 15 November 2022, the Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report entitled, 'Climate Scenario Analysis by Jurisdictions: Initial findings and lessons' (the Report).

The Report highlights the findings from a joint survey conducted by the FSB and the NGFS, including analysing the current status of climate scenario analysis, the main purpose of the scenario exercises and the main uses of the scenario analysis results.

The Report sets out, amongst other things:-

• current estimates of financial exposure to climate risks;
• an overview of climate scenario analyses techniques; and
• where the current data gaps are in order to improve the viability of scenario analysis, as well as some of the approaches that are currently being adopted to try to close these gaps.

Click here to view the Report.