Agenda

Registration and breakfast

Moderator

Chair’s opening remarks

EBA ESG Guidelines

Preparing for Climate Risk, Data Demands, and Resilience

• Regulatory Shift: Understanding the upcoming EBA ESG requirements and their implications
• Climate Risks as Financial Risks: Physical and transition risks to stability, capital, and reputation
• Data as the Foundation: Overcoming challenges in sourcing, validating, and applying climate risk data
• Stress Testing for Resilience: Designing climate scenarios and leveraging reverse stress testing to identify vulnerabilities

ALIGNING REGULATORY PERSPECTIVES – PANEL

Balancing compliance with divergent regulatory frameworks between Europe and the US

• Ensuring alignment between different regulatory expectations especially for US based banks with operations in Europe
• Allocating sufficient resources to meet regulatory demands for climate risk
• Understanding the effects of the omnibus package and whether banks will continue prioritizing climate strategies
• Anticipating the shift to a more cautious approach to climate regulations
• Investing in climate stress testing without clear long-term regulatory direction

Morning refreshment break and networking

RIDING THE GLOBAL WAVE OF MANDATED CLIMATE RISK REPORTING

Leveraging mandatory climate disclosures to deliver alpha

• ISSB S2 is here to stay – what it means for Europe’s ESRS framework and beyond
• From compliance cost to strategic advantage
• Why standardised risk analysis is reshaping portfolio decisions
• Where the alpha lies: opportunities within transition and physical risk
• New research: unlocking alpha in a world of mandatory disclosures

INTEGRATION WITH RISK FRAMEWORKS:

Integrating climate risk into existing risk management frameworks and business strategy

• Adjusting traditional risk frameworks to ensure climate-related risks are adequately considered
• Aligning long term climate risk projections with strategies to ensure the insights from stress testing inform actionable decisions
• Establishing clear internal ownership for managing climate-related risks across business units
• Coordinating cross-functional teams to integrate climate insights into financial planning and risk oversight

INTEGRATION WITH MODEL RISK FRAMEWORKS:

Integrating climate risk into existing model risk management frameworks and business strategy

• Reviewing effective ESG and climate risk validation frameworks
• Determining how climate risks will influence firms’ broader business strategy and operations
• Understand key components to validate climate risk models. Examples in physical and transition risks
• Aligning long term climate risk projections with strategies to ensure the insights from stress testing inform actionable decisions

Lunch break and networking

PHYSICAL CLIMATE RISKS

Navigating uncertainty surrounding physical climate risks

• Forecasting physical impacts of climate change during times of uncertainty
• Tackling uncertainty created with long-term projections of climate risk
• Understanding where and how to invest in climate risk mitigation.
• Balancing potential risk with resource allocation
• Highlighting the lack of advancement in physical risk assessment

FUNDING CLIMATE ADAPTATION AND MITIGATION PROJECTS – PANEL

Funding climate risk solutions

• Identifying who will finance climate adaptation projects
• Developing a clear strategy to attract necessary funding
• Exploring innovative business models and funding sources

Afternoon refreshment break and networking

MODELLING

Navigating climate risk modelling

• Addressing the inability to back-test climate models due to the lack of historical precedent
• Discussing whether to develop internal models or rely on external vendors
• Navigating uncertainty in long-term projections

TRANSITION RISK – PANEL

Implementing transition risk policies during a varying political and economic landscape

• Assessing risks when transitioning to a low carbon economy in times of uncertainty
• Determining how transition policies will affect clients and businesses to understand their implications
• Planning for future scenarios in the instance of delayed policies such as carbon taxation
• Adapting portfolios amidst uncertain conditions

ADVANCES IN CLIMATE RISK INTEGRATION TO CAPITAL MODELS

• Balancing regulatory expectations and model risk management practices on climate risk integration to IRB models
• Case studies: climate risk as a driver of Probability of Default and Loss Given Default risk parameters
• Impact and use case of climate risk integration to regulatory capital models

Chairs Closing Remarks and end of day one and drinks reception