Consider risks across scenarios

Aufsichtserwartung

When conducting scenario analysis and stress testing with respect to climate-related and environmental risks, at least the following aspects are expected to be considered for both the normative and economic perspectives: how the institution might be affected by physical risk and transition risk; how climate-related and environmental risks might evolve under various scenarios, taking into account that these risks may not be fully reflected in historical data; how climate-related and environmental risks might materialise in the short, medium and long term depending on the scenarios considered.

Adressat: Institutions

Fundstelle: Guide on climate-related and environmental risks, Expectation 11

Quelldokument

• Guide on climate-related and environmental risks - Supervisory expectations relating to risk management and disclosure (November 2020)