The Network for Greening the Financial System (NGFS) has released an updated edition of its Guide on Climate Scenario Analysis, updating the 2020 first edition to reflect advances in scenario design, data and modelling and to consolidate emerging best practices for use in supervisory exercises and firms’ risk management. The updated Guide incorporates methodological progress from NGFS members and the wider community and reflects the increasing granularity of NGFS long-term climate scenarios, alongside improved integration of the macro-financial impacts of physical and transition risks. A key addition is an explicit emphasis on short-term scenarios, positioned as increasingly important for assessing near-term financial risks linked to climate change and evolving climate policy measures. The NGFS frames the Guide as a practical reference intended to remain a living document as climate-related data, modelling approaches and supervisory practices develop.
Network for Greening the Financial System 2025-11-13
Network for Greening the Financial System updates its Guide on Climate Scenario Analysis with stronger focus on short-term scenarios
The Network for Greening the Financial System (NGFS) has updated its Guide on Climate Scenario Analysis to incorporate advances in scenario design, data, and modelling, emphasizing short-term scenarios for assessing near-term financial risks related to climate change. The Guide aims to serve as a practical reference for supervisory exercises and firms' risk management, reflecting methodological progress and emerging best practices.