The ECB publishes the results of its economy-wide climate stress test, spanning more than four million firms worldwide and 1,600 euro area banks under three different climate policy scenarios.
The results highlight a couple of major conclusions:
1) Firms and banks will benefit from early adoption of green policies and a transition plan towards a zero-carbon economy.
2) The impact of climate risk is concentrated in certain regions and industry sectors (within the Euro area).
3) Firms exposed to physical risk(s) could face very severe and frequent natural disasters affecting their creditworthiness and making them more exposed to financing constraints.
Note that the ECB used Urgentem, which is part of our Specialists Network (see that section on this site), as a main provider of data in their study for Transition Risk.
Access the ECB report here – https://www.ecb.europa.eu/pub/html/index.en.html#/search/stress%20test/1