Extreme weather has always meant extreme risks for businesses and investors. Yet climate change has varied the calculus, and many businesses are facing new, potentially existential risks as the world and the energy transition heat up. As such, central banks and financial supervisors have begun conducting climate risk stress tests, to ensure these institutions are capable of mitigating the potential impacts of a changing climate. But what do these tests entail, which markets have been the most proactive in conducting them, and what exactly is “climate risk” anyway? On today’s show, Tom Rowlands-Rees is joined by Tifenn Brandily, BloombergNEF’s head of transition risk and alignment, and special guest Edo Schets, Bloomberg’s head of climate, nature and regulatory financial solutions, to discuss findings from the note “Climate Risk Stress Test Review”.

Complementary BNEF research on the trends driving the transitions to a lower-carbon economy can be found at BNEF<GO> on the Bloomberg Terminal or on bnef.com

Links to research notes from this episode:

Climate Risk Stress Test Review - https://www.bnef.com/insights/35901

TRACT - https://www.bnef.com/insights/34869

Worksheet Sample Library for Physical Risk - WSL PHYSICALRISK<GO>

Worksheet Sample Library for Water - WSL WATER<GO>

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Weathering the Storm: Climate Risk Stress Tests

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Weathering the Storm: Climate Risk Stress Tests