ECB published the methodology of climate stress test for 2022 exercise
The 2022 climate risk stress test exercise is considered to be a joint learning exercise with pioneering characteristics. One of its main objectives is to enhance the capacity of both banks and supervisors to assess climate risk. In this context, the quality assurance process also serves to enhance the supervisory understanding of what climate-relevant data banks have available and the limitations when assessing climate-related risks, to identify best practices and to ensure that banks follow the instructions as set out in the methodology document.
In this alert you will read more about the questionnaire, metrics and stress test projections for climate risk.