In conversation with the ECB on economy-wide climate stress-testing model

Incorporating climate scenarios into risk assessments is fundamental to any financial strategy and supervision framework. Central banks are now developing and integrating their own tools into financial institutions. At the OMFIF Sustainable Policy Institute’s symposium we heard from the Bank of England, Banque de France and Banco Central do Brasil on the challenges, successes and lessons learnt in implementing their stress-testing models.

This roundtable continues the conversation with the European Central Bank’s economy-wide stress-testing model. Topics of discussion will include scenario analysis, the evaluation of physical and transition risks, capturing credit and market risk to banks, the wider financial sector and the implications of energy transition.