transition risk

Definition

As policymakers develop industrial policies to steer their economies and associated production along the path to the Paris Agreement, companies that are clearly misaligned are more likely to be affected by such policy and market movements, and are exposed to elevated transition risk.

Quelldokumente

• Guide on climate-related and environmental risks - Supervisory expectations relating to risk management and disclosure (November 2020)
• Walking the talk - Banks gearing up to manage risks from climate change and environmental degradation (results of the 2022 thematic review) (November 2022)