Climate Stress Testing Methodologies for Banks

As climate risks intensify, financial institutions worldwide are under increasing pressure to understand, simulate and respond to a fast-evolving risk landscape. This groundbreaking report – developed in collaboration with the United Nations Environment Programme Finance Initiative (UNEP FI) – delivers a timely and comprehensive look at how global banks are tackling climate risk stress testing today.

Based on insights from in-depth surveys and expert-led workshops with more than 20 leading UNEPFI banks, this report provides a critical inventory and benchmarking of current climate risk stress testing practices. It highlights what’s working, where gaps remain and how to strengthen risk resilience for the future.

This report provides essential guidance to help financial institutions:

• Benchmark their own practices against industry leaders.
• Identify practical steps to enhance modeling, infrastructure, and governance.
• Stay ahead of evolving regulatory expectations.
• Support long-term resilience and sustainability goals.