Glossary
Climate stress testing
Climate stress testing
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CONTENTS
Climate stress testing is the practice of applying severe-but-plausible climate scenarios to a portfolio to measure how its losses, capital, and value would hold up.
Example in context
You're at a bank preparing for a supervisory exercise. A stress test shows mortgage exposures in two coastal regions drive most of the loss under a high-warming scenario — pinpointing where to set limits before the regulator asks.
Why it matters
Supervisors and central banks increasingly require it, and it surfaces concentrations a normal review misses. EarthScan provides the asset-level hazard data a credible stress test runs on.
Stress-test against any scenario
FAQ
What is climate stress testing?
Running a portfolio through adverse climate scenarios to see how losses and capital hold up — often for supervisory or internal risk purposes.
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