Free Access GARP SCR New Release

A sustainability-linked bond for the purpose of financing a company-wide transition strategy.

A social bond as it offers more flexibility because there is no external review requirement.

A green bond because the use of proceeds can be clearly identified and tied to a particular project.

A sustainable bond so the company will benefit from favorable pricing from the terms linked to the corporate sustainability objective.

Transition and physical climate scenarios assess historical vulnerabilities to climate change.

Physical scenarios portray a pathway of emissions to deliver a given limit to warming.

Transition and physical risk considerations are complementary in scenario analysis.

Physical scenarios include material consequences of new climate policies on short-term energy supplies.

High level of deposit withdrawals from households and corporations after a hurricane severely affects a country.

Sea level rise causes coastal property prices to decrease, which leads to real estate losses for the bank.

Insurers significantly increase premiums due to climate-related risks and leave the bank without coverage, amplifying risks to financial stability.

Sector-wide asset stranding for the financial sector increases due to climate pressures, which affects bank revenue and profits as cash flow decreases.

A company’s warehouse that is damaged by a tornado causes business interruption that results in loss of revenues and profits, which weakens the company’s ability to repay loans.

A mining company that extracts lithium for lithium-ion batteries benefits from higher commodity prices, which increases revenue and profits.

A company’s high-emissions factory is hit with a higher carbon tax that results in asset stranding, which causes the company to have less collateral to use to secure funding.

A bank’s customers withdraw deposits and draw on credit lines to finance cash-flow needed for recovery after damaging flooding, which increases loan-to-deposit ratios.