Managing risks from climate change
Regulation
Policymakers require market participants to use climate stress tests to manage exposure to climate-change risks
Risk management
Climate stress test will lead to a risk-averse portfolio strategy and ESG engagement
Portfolio strategy
Scope’s Climate Stress Test: helping investors and lenders build climate risk-averse portfolios
SCOPE’S MACROECONOMIC CLIMATE STRESS TEST
A top-down approach to measure climate risk
Assessing the historical impact of temperature change and extreme weather events on economic growth
Analysing future climate-related risk comparably across sectors and countries
Projecting annual revenue losses across 2,745 country/sector combinations
METHODOLOGY HIGHLIGHTS
Focus on chronic physical and transition risks