This report enables risk professionals at banks to stay abreast of the latest developments in climate stress testing and strengthen their internal frameworks. It outlines common approaches and key considerations and provides an update on the latest climate stress testing practices and potential use cases for climate stress testing outcomes.

Additionally, the report highlights areas for further enhancement in climate stress testing methodologies. Case study examples of climate stress testing conducted by banks are included to offer risk professionals practical insights and lessons learned. By presenting good practice and identifying areas for prioritization the report may assist in meeting supervisory expectations for managing climate risks.

The report is downloaded alongside two supplementary documents: Case Studies and Practical Examples and Survey Findings.

This report from UNEP FI’s Risk Centre has been developed in collaboration with SAS Institute Inc.