UN climate risk chief calls for shorter-term stress tests
But banks say heavy modelling demands will take time to respond to adequately
Climate stress tests need to set shorter shock scenarios in order to ensure they feed through into management decisions, according to a financial sector climate risk expert at the United Nations.
“I’m not saying what happens in 30 years does not matter to a financial institution, but it is just not presently seen as a priority by senior leadership, who are focused on nearer-term issues,” said
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