Decarbonisation and Disruption: Understanding the financial risks of a disorderly transition using climate scenarios

Published February 2021

Decarbonisation and Disruption’ highlights the ways in which many sectors are exposed to transition risk. If not properly managed, a disorderly transition could have major ramifications for financial stability. Financial institutions need to not only prepare for the transition along with their counterparties but must have the right tools for risk assessment. This paper was supported with analysis from Oliver Wyman, a leading global management consultancy with deep risk expertise.

The paper also includes bank case studies that affirm greater economic risks associated with disorderly transition scenarios compared with orderly transition scenarios.

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Find information on all UNEP FI’s guidance on implementing the TCFD Recommendations here.

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