transition risk

Central banks are playing an increasingly active role in promoting the move towards a sustainable global economy. This paper explores the role central banks’ foreign exchange (FX) reserves portfolios can play in this context. Read more

This report establishes a firm basis for central bank supervisory action in mitigating the risks from the transition to net-zero and proposes a policy change to enable the Bank of England to better identify and reduce transition risk. Its analysis is relevant for other central banks around the world, too. Read more

Business decisions taken today will impact both the ability to transition to net-zero and the ability to cope with the physical risks from climate change, writes Swenja Surminski, a lead author on the Third UK Climate Change Risk Assessment being launched today. Read more

Roberta Pierfederici explains why new climate scenarios are a crucial step forward for informing central banks’ and supervisors’ response to climate risk, but recommends improvements for the methodological framework. Read more

Without robust evidence for a green supporting factor, the European Commission and the High Level Expert Group on Sustainable Finance (HLEG) should look for other avenues to increase green investment says Sini Matikainen. Read more

Encouraging voluntary disclosure by companies of their exposure to climate-related risks may not be enough says Grantham Research Institute Policy Analyst, Sini Matikainen. Read more