The European Banking Authority's forthcoming climate stress testing module marks a significant shift in supervisory expectations. For the first time, climate risk will become a dedicated component of the EU-wide stress testing exercise, introducing new requirements for climate scenario analysis, governance, documentation, and reporting.
Banks will be expected to assess both transition and physical climate risks using prescribed supervisory assumptions while demonstrating transparent methodologies, robust governance frameworks, and clear audit trails. The exercise is also expected to require stressed credit risk metrics, including PD and LGD estimates, alongside extensive documentation supporting modelling approaches and assumptions.
Join specialists from S&P Global to explore the practical implications of the EBA's proposed climate module and discuss how financial institutions can prepare for evolving regulatory expectations.
Attend this webinar to:
- Understand what is changing and what supervisors are likely to expect
- Discover how climate scenarios can be translated into measurable financial risk impacts
- Learn how to address common data, modelling, and reporting challenges
- Explore practical strategies for building a stress testing framework that is both compliant and scalable
