Scenario Analysis Guide for Banks

Link to publication.

The Climate Financial Risk Forum reports jointly to the CEO of the Bank of England’s Prudential Regulation Authority and the CEO of the Financial Conduct Authority. It brings together senior representatives from across the financial sector, including banks, insurers, and asset managers.

The Scenario Analysis Guide for Banks is one of a number of CFRF guides to help the UK’s financial sector develop its approach to climate-related financial risks and opportunities. 

It includes a listing of climate scenario ‘families’ (combinations), published by:

  • IEA (International Energy Agency)
  • NGFS (Network for Greening the Financial System)
  • IPCC (Intergovernmental Panel on Climate Change)
  • UK CCC (Climate Change Committee)
  • DDP (Deep Decarbonisation Pathways)
  • UNEP FI and NIESR (United Nations Environment Program Finance Inititiative and the UK’s National Institute of Economic and Social Research)

Added to these are two sets of scenarios published by central banks and regulators: