2DII’s 1in1000 programme on long-term risks, in partnership with the SOAS Centre for Sustainable Finance, has launched a new climate stress-test simulation game that allows users to simulate different strategies and choices around the design of climate-related stress-tests and scenario analysis. The game was originally developed with the financial support of UN Principles for Responsible Investment and Climate-KIC.
The simulation game is a capacity building tool for financial institutions, financial supervisors, and central banks, offered by 2DII and the SOAS Centre for Sustainable Finance. It is also part of the SOAS Green Finance Masters Course. It allows participants to walk through the different choices of environmental data, financial data, and stress-test models, simulate a combination of different approaches, and test different parameters within choices.
We are currently applying the simulation game as part of two capacity building programmes with financial supervisors. The simulation game will be further enhanced and developed with the support of the Centre for Systems Solutions (CRS), funded by UK PACT. The enhanced simulation game will also include potential climate actions by financial institutions and will integrate potential feedback loops and systemic risks. We will apply the enhanced game with roughly 30 Colombian pension funds and banks in September 2022.
If you or your institution are interested in finding out more about the simulation and how it can help your organization build capacity on climate stress-tests, please contact Jakob at theiafinance.wpengine.com.
About our funders: This work was originally developed with the financial support of UN Principles for Responsible Investment and Climate-KIC. It will be further enhanced with the support of the Centre for Systems Solutions (CRS), funded by UK PACT.