On 21 October 2022, the Bank of Italy hosted a workshop entitled 'Climate change risk and credit assessment', which brought together experts from national central banks, academia and the private sector. The workshop was introduced by Paolo Angelini, Deputy Governor of the Bank of Italy, who highlighted the role that the In-house Credit Assessment Systems (ICAS) of national central banks play in the transmission of the ECB's monetary policy and outlined the main challenges to be faced when dealing with the integration of climate change risks considerations into credit rating models.
Some of the presentations discussed a number of recent studies conducted by national central banks in the context of the work that is being carried out to incorporate climate change risk into the credit assessment methodologies used by the ICAS. One session was devoted to climate change risk in the banking system and the potential impact on banking regulation. The final session covered studies on asset management, including a presentation on applying climate scenario analysis to central banks' balance sheets.
The workshop documentation is available below.
