CGFI has released four new reports from research on the Climate Biennial Exploratory Scenario exercise (CBES). The reports assess the impact of CBES on participating financial institutions and insurers, with lessons for future scenario analysis and stress testing.
Through 2022-23, a team of CGFI researchers led by Dr Nicola Ranger has collaborated with the UK’s Climate Financial Risk Forum (CFRF) and the Global Association of Risk Professionals (GARP) to assess the impact of the CBES exercises.
Drawing on interviews, surveys and workshops from participants across finance and insurance, the team’s Survey Report was produced with the UK Climate Financial Risk Forum (CFRF).
This synthesis highlights:
The team have also released a separate CGFI report on Recommendations for Central Banks, Supervisors, Financial Institutions and Researchers.
Key recommendations include:
Towards these goals, the report calls for the UK Government’s Green Finance Strategy to invest in better scenario development as a public good, and support data generation and enhanced disclosure to underpin green finance.