Irene Monasterolo, CLIMAFIN Senior partner and cofounder, has authored a new commentary article on OMFIF (Official Monetary and Financial Institutions Forum), a leading platform for financial policy and institutional research.
In “Assessing immediate and material climate-related financial risks in NGFS’ short-term scenarios”, Irene explains how the recently published NGFS Short Term scenarios help investors, financial institutions and supervisors in assessing and managing extreme and compound physical risks, and transition risks in a 5 years horizon.
Supported by a novel modelling framework, which accounts for investors’ expectations, the scenarios provide ready to use financial risk variables such as adjustments in the sectoral probabilities of default, equity, corporate and sovereign bonds valuation.
For more insights into how CLIMAFIN supports financial institutions in addressing climate-related risks, contact us.