Part #1 - Climate Transition Risk Assessment

Climate transition risk is the business related risk of moving to a low carbon economy. In this presentation, the panel will share some practical considerations in assessing climate transition risk. They will review publicly available scenarios and discuss their application in an actuarial context.

Part #2 - Using Scenario Analysis to Assess Climate Transition Risk

The Bank of Canada recently completed a climate scenario analysis pilot in collaboration with six Canadian financial institutions. Scenario analysis is a useful tool for identifying potential risks in an environment of considerable uncertainty. Climate transition risks are challenging to assess accurately given the long time horizons with high uncertainty about how policy, technology and socio-economic factors might evolve. Scenario analysis provides a flexible “what-if” framework to explore how the risks may manifest in the future.