Risks and opportunities related to environmental transition are usually evaluated through the use of scenarios, produced and maintained by international bodies such as the International Energy Agency. This approach assumes perfect knowledge of the scenario by the agent, but in reality, scenario...

We develop a structural model for pricing a defaultable bond issued by a companysubject to climate transition risk. We assume that the magnitude of thetransition risk impacts depends on a transition scenario, which isinitially unknown but is progressively revealed through theobservation of the...

We propose a statistical methodology to quantify the financial implications of tropical cyclone-related physical risks implied by climate change. To address the sensitivity of disaster intensity to climate change, we provide a Monte Carlo methodology to generate synthetic cyclones consistent...

Financial institutions are recognizing the importance of physical climate-related risks and are expected to disclose the presence of such risks in their portfolios. The assessment of physical risks is based on climate data and in particular with the advent of climate change, it will increasingly...