Nos derniers articles

These Joint Guidelines on ESG Stress Testing provide a unified European framework for assessing how environmental, social, and governance risks impact the financial sector. These standards require competent authorities to evaluate both the short-term financial stability and long-term business model resilience of credit institutions and insurance firms. The methodology initially prioritizes climate-related environmental risks, examining both physical threats like weather events and transition risks such as policy shifts. To ensure practical application, the guidelines emphasize proportionality and materiality, allowing for simplified approaches based on the size and complexity of the entity. 𝗜𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻 𝗶𝘀 𝘀𝗲𝘁 𝗳𝗼𝗿 𝗝𝗮𝗻𝘂𝗮𝗿𝘆 𝟭, 𝟮𝟬𝟮𝟳, following a refinement process that integrated public feedback on data granularity and scenario timelines. Ultimately, the guidelines aim to foster supervisory consistency across the EU while adapting to the evolving maturity of ESG data and modeling.

This article presents modeling approaches—both structural and reduced-form—to improve the understanding and prediction of environmental risks. It enhances existing models for better risk assessment and pricing, particularly in infrastructure and land use contexts. Potential extensions include advanced temperature and rainfall modeling, such as stochastic mean-reversion and regime-switching Lévy processes. The paper also suggests future research comparing insurance pricing methods and exploring parametric insurance mechanisms, where payouts are triggered by measurable parameters rather than actual losses. These developments aim to refine environmental risk management and insurance strategies.

EBA launched a climate risk dashboard based on banks’ Pillar 3 ESG disclosures. This tool provides centralized access to climate risk indicators, aiding assessment and monitoring across the EU/EEA banking sector. Data reveals that over 70% of bank exposures are linked to high climate-impact sectors, while less than 30% face elevated physical risk. Many loans secured by immovable property have high energy efficiency scores, though estimates are widely used. The dashboard, based on 2023-2024 data, marks the first step in a broader ESG risk framework, with regular updates planned.

This paper introduces CATALIST, a detailed sectoral model of the Spanish economy, to assess transitional risks from climate policies like carbon pricing. It reveals varied sectoral impacts, potential financial stability risks, and growth opportunities via smart tax revenue use, offering a versatile tool for policy and scenario analysis.

“As the latest climate-related crisis unfolds in Los Angeles, Treasury releases most comprehensive data on homeowners insurance in history, along with report detailing higher costs to homeowners and insurers of elevated climate perils.”

"Among investor categories, #insurers and households appear to be the most exposed to #climaterisks through the intermediary of #investmentfunds. However, insurers seem to be aware of this #risk and tend to invest in funds with low exposure to brown assets."

The paper highlights the importance of #thirdparty #transparency in the #riskmitigation of #supplychain #climaterisks.