Climate Risk Scenario

This book focuses on climate-related risks (as part of the broader theme of ESG risks and sustainability) to analyze the following main aspects: the evolution of the overall regulatory framework in the European Union (EU) and at the international level to contribute to the safety and soundness of the financial sector and to ensure adequate preparation to manage climate-related risks; the climate risk transmission channels, i.e., the mechanisms through which climate risk factors affect individual counterparties and assets of financial institutions, with potential climate-related financial risks for the financial institutions themselves and for the whole financial system; the peculiarities of climate risk transmission channels with reference to specific business models of financial intermediaries, with a focus on commercial banking; the governance and disclosure implications of climate risks, which contribute to the financial sector resilience and unlock opportunities.