The ECB’s climate stress test: results, approaches and lessons learnt
The financial sector must increase its capabilities in understanding and mitigating climate risk. It is increasingly evident the financial sector remains largely ill-equipped to disclose climate risk and many firms do not meet supervisory expectations. Data remains a core issue, hindering forward-looking projections on credit risk, causing implications for balance sheets and obstructing clear transition targets.
The European Central Bank has established a supervisory climate risk stress test to better understand banks’ capabilities for data and risk metrics, long-term risk projections and parameters in physical and transition risk scenarios. Christoffer Kok, deputy head of the stress test modelling division of the ECB’s directorate general macroprudential policy and financial stability, will discuss the results of the stress test, approaches and methodologies taken and lessons learnt.
Speaker:
Christoffer Kok, Deputy Head, Stress Test Modelling Division, Directorate General Macroprudential Policy and Financial Stability, European Central Bank
Timings:
14:00-15:00 (London)
09:00-10:00 (New York)
21:00-22:00 (Singapore)
This meeting will be conducted under the OMFIF Rules.
This virtual discussion is part of the OMFIF Sustainable Policy Institute. The SPI is a high level community which brings together central banks, sovereign funds, public pension funds, and their counterparts in asset management, banking and professional services to explore policy, regulatory and investment challenges posed by environmental, social and governance themes. See more information on OMFIF’s SPI here.
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The Sustainable Finance Policy Tracker provides a comprehensive overview of different countries’ approaches to mitigating climate risks in the financial sector.
Covering 22 countries and jurisdictions, the tracker presents information on 14 areas that include regulatory and supervisory measures, climate stress testing activity, net zero strategies, green bond issuance and disclosure requirements.