Nos derniers articles

This paper that explores the design of #climate#stresstests to assess #macroprudential#risks from #climatechange in the #financialsector. The authors review current climate stress #scenarios employed by #regulators, highlighting the need to consider dynamic policy choices, better understand feedback loops between climate change and the economy, and explore compound #riskscenarios. They argue that more research is needed to identify channels through which plausible scenarios can impact credit risks, incorporate #bank-lending responses to #climaterisk, assess the adequacy of climate #riskpricing in #financialmarkets, and better understand the process of expectations formation around the realizations of climate risks.

It highlights the increasing #regulatory focus on #climaterisk faced by #canada's #banks, both domestically through the #osfi and globally through the adoption of guidelines proposed by the #tcfd. As regulators seek to impose more #monitoring, #disclosure, and mitigation obligations on #financialinstitutions, the article raises whether banks' #capitalrequirements should be increased to reflect the #risks associated with #climatechange.

"Shocks to disaster costs seem to decrease all type of emissions significantly and also increase renewable energy use significantly. The occurrence of natural disasters increases the political disagreement among U.S. politicians, as well as, the climate policy uncertainty, highlighting the need for efficient policymaking and regulations. "

"We present a novel approach to quantify the uncertainty and sensitivity of risk estimates, using the CLIMADA open-source climate risk assessment platform. This work builds upon a recently developed extension of CLIMADA, which uses statistical modelling techniques to better quantify climate model ensemble uncertainty. Here, we further analyse the propagation of hazard, exposure and vulnerability uncertainties by varying a number of input factors based on a discrete, scientifically justified set of options."

"We aim to analyze strategies for assessing and managing new risks that affect the insurance industry, considering the regulatory requirements that the company must follow. To this end, the open-source software Climada was examined. This software uses stochastic forecasting models such as ARCH, GARCH, and ARIMA. Through real data obtained during an internship at E&Y, it was determined that these models can be a useful tool for insurance companies when dealing with extreme risks. This includes their exposure and solvency. Additionally, the study explores issues related to climate change"

"... our findings provide new evidence regarding U.S. banking organizations' exposure to climate risks with implications for risk management practices and supervisory policy."

"Climate risk is positively associated with the environmental, social, and governance (ESG) performance of banks and negatively associated with the stakeholder ESG sentiment towards them. Negative sentiment due to such exposure is associated with worse financial performance and lower stock returns, but stronger ESG performance mitigates these adverse effects."

"… our findings reveal that climate change uncertainty can trigger firms to invest more in CSR activities to hedge against future climate risks.”

" We focus on German banks and measure their exposure to climate risk using CO2 emissions reported for German firms in the European Union Emissions Trading System (EU ETS). ... Overall, our approach accounts for 61.25% of the German emissions covered under the EU ETS. We document that only 19 German banks concentrate 95.88% of the total CO2 emissions in their portfolios. "

"... our findings question whether insurance rates can play a useful role in steering climate adaptation and whether households will have continued access to insurance."