Macro Learnings about Climate-related Credit Losses
In this video collaboration between the MMF, Grant Thornton and Finance and Sustainability Unlocked, Tony Hughes, expert risk modeller and data scientist outlines the impact of climate change on the financial system. Tony explores the risk that climate change poses to bank safety by comparing the evidence from the ECB and CBES around counterparty probabilities for default. Tony weighs up evidence at the macro-level for why climate change has so far not had a significant impact on the financial system.
Overview
Tony Hughes, expert risk modeller and data scientist presents his argument for why climate change has so far had a limited impact on the financial system. Tony references stress tests from both the ECB and CBES that corroborate that the global financial crisis had a more immediate and severe impact than climate change has had, to date.
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
Summary
Expert
Tony Hughes
Dr Tony Hughes is an expert risk modeller and data scientist at Grant Thornton. Tony has over 20 years of experience in industry and academia. Before he joined Grant Thornton he worked as a senior quantitative modeller at Moody’s Analytics for over two decades. At Moody’s, Tony developed market risk models and structural macroeconomic models for use in simulation and scenario development. Tony’s key focus is in climate modelling and ESG, which Tony described as the “greatest quantitative challenge the industry has faced for many decades”.
