ECB Publishes the Results of the 2022 Climate Risk Stress Test
The 2022 climate risk stress test should be seen in the context of a broader set of
activities that ECB Banking Supervision is undertaking in 2022 to assess supervised
institutions’ level of preparedness for properly managing climate risk.
Focusing on banks’ progress towards developing climate impact factors, and stress test projections along with the key risks faced by banks in terms of both transition and acute physical risks. The report highlights ECB expectations, next steps and highlighted industry benchmark results from the input of over 100 participating EU Banks.
The 2022 climate risk stress test was a useful learning exercise for banks and supervisors, acting as a catalyst to strengthen banks’ efforts to develop climate risk stress-testing frameworks in accordance with the expectations laid out in the ECBGuide on climate-related and environmental risks.