Assessing Climate Related Transition and Physical Risks to Mortgage Portfolios

Physical risk is a critical aspect of the 2015 “Paris Agreement,” which places a binding obligation on the world’s governments to “make finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.” Understanding physical risk is essential for effective decision-making. Regulators, customers, investors, and other stakeholders are driving financial institutions to do their part to transition to a low-carbon economy and manage exposure to climate-related risks, including physical risk. They’re using new data sources and developing new types of models, often leveraging methods from other scientific and engineering fields. Practitioners need software that provides a broad range of modeling functionality, flexible interfaces, rich visualization capabilities, collaboration, and review features to keep up with the pace of change in this area.

Learn how MATLAB^® can get you started modeling both **physical** and transition climate risks. In a live demonstration, you will learn how to:

• Visualize flooding risk within a city (physical risk)
• Understand the impact of policies aimed at increasing the energy efficiency of buildings (transition risk)
• Model the impact of these risks on a portfolio of mortgages

MATLAB^® offers powerful tools to help you assess physical risk and transition risk in various scenarios. By integrating physical risk data with other climate-related metrics, you can gain a comprehensive understanding of how physical risk influences financial outcomes. This session will also show you how to create models that account for physical risk, helping you make more informed decisions.