Climate risk modeller
In this video collaboration with MMF and Grant Thornton, risk modeller and data scientist Tony Hughes outlines the impact of climate change on the financial system. More specifically, why climate change has had a limited impact on the financial system so far.
In this video collaboration with MMF and Grant Thornton, risk modeller and data scientist Tony Hughes outlines the impact of climate change on the financial system. More specifically, why climate change has had a limited impact on the financial system so far.
9 mins 10 secs
Despite 50 years or more of global warming, it has been found that climate change has had a limited impact on the financial system. The ECB undertook a climate stress test in parallel to the bank of England's Climate Biennial Exploratory Scenario (CBES) test and they found that corporate probability of default levels would rise by only 7% under a no-action scenario (hothouse world scenario).
Key learning objectives:
Analyse the current and projected impact of climate change on the financial system
Explore the macro-level evidence for the impact of climate change on the financial system