This climate change Scenario Analysis chapter provides practical guidance on how to use scenario analysis to assess climate-related financial risks to inform firms’ strategy and business decisions. It was written by a cross-industry working group under the auspices of the Climate Financial Risk Forum.
This chapter is aimed at banks, asset managers and insurers of all sizes, and may be of interest to other institutions, such as pension schemes. It describes current industry good practices but is also designed to act as a guide for those firms who have yet to fully consider this topic.