Risk management & supervision - The Sustainable Finance Observatory

Storm Ahead: A Proposal for a Climate Stress-Test Scenario

This report provides guidelines for building an adverse climate scenario that can be used by financial supervisors as inputs into either traditional or climate-specific s... Read More >

Report Risk management & supervision Insurance Regulators & policymakers

Right Direction, Wrong Equipment

This report seeks to explore options around integrating transition risk into mainstream stress-test scenarios used by financial supervisory authorities.... Read More >

Report Risk management & supervision Regulators & policymakers

The Carbon Boomerang

Climate change-related litigation risks have the potential to act as both a material driver, and consequence, of the energy transition (or ‘ET’). ... Read More >

Report Risk management & supervision Regulators & policymakers

Limited Visibility: The Current State of Corporate Disclosure on Long-term Risks

This discussion paper extends the analysis of time horizons in financial markets, conducted as part of the Tragedy of the Horizons project, to ‘long term risk disclosur... Read More >

Report Reporting & disclosures Risk management & supervision Financial institutions

Transition Risks and Market Failure

This paper provides a theoretical discourse linking traditional market failure literature and the recent research around potential stranded assets risks associated with t... Read More >

Report Risk management & supervision Financial institutions

Changing Colors

This paper seeks to explore the question of adaptive capacity of companies to financial risks that may arise in the context of the transition to a low-carbon economy.... Read More >

Report Risk management & supervision

Lifeguard Wanted: Tracking Art. 2.1c & Transition Risks in Financial Markets

This briefing provides a roadmap for financial regulators and climate policymakers to supervise and monitor regulated entities’ capital misallocation relative to the Pa... Read More >

Report Reporting & disclosures Risk management & supervision Regulators & policymakers

The Transition Risk-o-Meter

This report constitutes the first attempt to develop transition scenarios involving over 30 parameters across 8 sectors directly tailored for financial risk and scenario ... Read More >

Report Low-carbon transition Risk management & supervision Financial institutions

The Long and Winding Road

This report is the second in the Tragedy of the Horizon series and focuses on the role of equity fund managers by assessing portfolio turnover.... Read More >

Report Risk management & supervision Financial institutions

All Swans are Black in the Dark

Academic literature calls ‘Black swans’ financial risks that are unpredictable.... Read More >

Report Risk management & supervision Financial institutions