FSB: third of climate stress tests not tackling physical risk
Six jurisdictions conducted exercises only for transition risk
More than a third of climate exercises being conducted around the world do not tackle physical risks to stability, their scope limited to transition risk, a Financial Stability Board survey suggests.
Though 84% of the 70 climate scenario exercises analysed by the FSB included an estimation of the economic impact of efforts to cut emissions dramatically, only 60% quantified the threat from extreme weather events and climate hazards, either as the exercise’s sole focus or alongside transition
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