The European Insurance and Occupational Pensions Authority (EIOPA) published the results of its climate stress test of European Institutions for Occupational Retirement Provisions (IORPs). In the first climate stress test of the sector, EIOPA set out to assess the resilience of IORPs against a climate change scenario that simulates a sudden,Continue…
Environmental, Social and Governance (ESG) issues currently have a low or neutral impact on insurers’ credit ratings due to immateriality, with the exception of environmental risks for property and casualty (P&C) insurers. However, Fitch expects ESG-driven decisions will influence insurers’ credit ratings in the medium-term. Insurers’ liability exposures will bearContinue…
According to the European Central Bank, despite improvements, banks still need to better identify and manage climate and environmental risks. ECB sets deadlines for banks to progressively meet all supervisory expectations by end of 2024. The European Central Bank (ECB) published the results of its thematic review – Walk the TalkContinue…
Federal Reserve Board announces that six of the nation’s largest banks will participate in a pilot climate scenario analysis exercise designed to enhance the ability of supervisors and firms to measure and manage climate-related financial risks. climate-related financial risks Scenario analysis – in which the resilience of financial institutions isContinue…
At its meeting on 22 September 2022, the General Board of the European Systemic Risk Board (ESRB) issued a warning on vulnerabilities in the financial system of the European Union (EU). The General Board concluded that risks to financial stability in the EU and the probability of tail-risk scenarios materialising have increased. TheContinue…
The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) issued their Autumn 2022 joint risk report. The report highlights that the deteriorating economic outlook, high inflation and rising energy prices have increased vulnerabilities across the financial sectors. The ESAs advise national supervisors, financial institutions and market participants toContinue…
Willis Towers Watson and Qontigo last year introduced the STOXX Willis Towers Watson Climate Transition Indices (CTI) to meet growing demand for transparent and systematic climate-oriented investment solutions. The indices employ a in house Climate Transition Value at Risk (CTVaR) methodology that quantifies the anticipated impact on equity valuations from the transition toContinue…
The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) issued their first joint risk assessment report for 2022. The report highlights the increasing vulnerabilities across the financial sector as well as the rise of environmental and cyber risks. Russia’s invasion of Ukraine and its economic consequences haveContinue…
34 members of the Institutional Investors Group on Climate Change (IIGCC) collectively representing over $7.1 trillion in assets have signed letters to 17 of Europe’s largest companies asking why expectations over climate related accounting disclosures have failed to be met. omission of climate risks in financial reporting Sent ahead ofContinue…
In its latest analysis released this week – Investors pay a premium for green equities – the Danmarks NationalBank examines whether investors are willing to pay a higher price for a company with low CO2e emissions relative to a corresponding company with higher emissions. And either if this greenium –Continue…
