transition risk

This commentary explains a new way to measure how the scope and speed of the economic transformation needed to mitigate climate change and the associated credit risk vary across sectors, jurisdictions and time. Read more

The impacts of biodiversity loss call for urgent and transformative changes to economic and financial systems. This paper discusses the need to extend the scope of central banks’ approach to the environmental crisis. Read more

The authors of this paper discuss qualitative, empirical, modeling, policy, and institutional research and identify priorities for future research. Read more

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