Navigating climate risk stress-tests in the financial landscape

Discover how banks and financial institutions in Indonesia should start to proactively addressing the intricate issues of climate-related and environmental risks through climate risk stress-testing methodology.

This article unveils how institutions should be integrating sustainability efforts done by customers into their assessment of transition risk and physical risk in the climate risk stress test. We also talked about the update on climate risk stress test guideline by OJK and excerpts of KPMG CEO Outlook Survey 2022 and its correlation with the practical implementation of such stress test.