Drought Stress Testing for Financial Institutions - New York Launch
Water scarcity has been highlighted as a top three potential risk by the World Economic Forum’s Global Risks Reports. Drought events are expected to become more frequent and increase in intensity in many regions due to physical climate change impacts. Improving the availability and quality of respective methodologies to adequately price and manage environmental and climate change-related risks is crucial to make financial decision-making more prudent, markets more efficient and economies more resilient.
In a pilot project on Environmental Stress Testing, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the Natural Capital Finance Alliance (NCFA), developed an analytical framework and tool that allows banks to quantify and assess the potential impact of drought events on the performance of their corporate loan portfolio. The Environmental Stress Testing Tool, successfully tested and developed with 9 partner banks from Brazil, China, Mexico and the United States, will be launched on 17 March 2017 in New York.
- Curtis Ravenel, Head of Sustainable Finance, Bloomberg LP
- Gregory Elders, Bloomberg Intelligence ESG Analyst, Bloomberg LP
- Courtney Lowrance, Global Head Environmental and Social Risk Management, Citi
- Dr. Rahel Wendelspiess, Environmental and Social Risk, UBS
- John Kapitan, Head of client development activities US sales and service, Risk Management Solution
- Nina Roth, Senior Advisor Sustainable Finance, GIZ
- Marie Morice, Director, Natural Capital Finance Alliance
- Jonathan Gheyssens, Expert for Ecosystem Services and Sustainable Land Use, UNEP-FI