Introducing Transition Check, a tool by UNEP FI and Oliver Wyman

23 September 2020 | Online

Join Oliver Wyman and UNEP FI on 23 September at the launch of “Transition Check”, a web-tool to translate climate scenarios into financial metrics. 

As businesses consider the impacts of climate change on their long-term sustainability, it has remained difficult to measure such risks – until now. Introducing Transition Check, a web-tool that takes a scenario-based approach for assessing transition risk and the potential impact of climate change on corporate lending portfolios within an overall framework consistent with the recommendations of the Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). Analysis of previously neglected impacts of physical risk (brought on by the increasing severity and frequency of climate events) and transition risk (arising from the adjustment to a low-carbon economy) is now critical for future planning.

Created as part of UNEP FI’s TCFD pilot project, Transition Check incorporates the Central Banks and Supervisors Network for Greening the Financial System (NGFS) reference scenarios and transforms them into relevant impacts for financial institutions.

Join us virtually to see a demonstration of the tool, and to hear from a panel of experts discuss how climate scenario analysis is being used across the financial sector. Using the “climate credit quality index” derived from the risk factor pathways and the calibration points, Transition Check calculates a new probability of default for all borrowers within a segment based on their starting ratings. Results are summarized at the sector, segment, and borrower level. Transition Check will be freely available to all UNEP FI members.

23 September 2020 | 10:00 – 11:00 EST – Register here

This event, as part of Climate Week NYC, is being hosted by UNEP FI and Oliver Wyman who jointly created the web-tool and analysis methodology. Transition scenario models used in this tool are provided by Potsdam Institute for Climate Impact Research (PIK) and the International Institute for Applied Systems Analysis (IIASA).

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