Modeling the Impact of Transition and Physical Climate Risks on a Portfolio of Mortgages

The 2015 “Paris Agreement” 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.” 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. 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