Good summary of the Fed's Climate Scenario Analysis Report. In short, there remain significant gaps in the understanding of #climaterisk within some of the nation's most important financial systems. This stress test has created a tremendous opportunity for instituions to begin thinking through processes that are meaningful to both potential regulation reporting and business decisions making processes. Any viable solutions must rely on high resolution rigorous data, complete with industry specific value-added insights in order to fully evaluate, and report, on that risk.
Key Insights from the Fed's Climate Scenario Analysis Report The Federal Reserve asked the top 6 banks in the US (Bank of America Corporation; Citigroup Inc.; The Goldman Sachs Group, Inc; JPMorgan Chase & Co.; Morgan Stanley; and Wells Fargo Company) to participate in a climate scenario analysis exercise to learn about their climate risk-management practices and challenges and to enhance their ability to identify, estimate, monitor, and manage climate-related financial risks. The participating banks used data from both internal and external sources, including First Street data, to respond. Read our guide for key takeaways from the Fed's report and learn how First Street models enable our partners to report on physical climate risk with confidence.
