Measuring the Climate Risk Exposure of Financial Assets : Methodological Challenges and Central Bank Practices

In order to understand climate-related risks and opportunities, the availability transparency of reliable financial information is essential. this regard, sector plays a special role owing its ties other economic sectors, exposure institutions highlights responsibility central banks. This paper uses literature related environmental sustainability reporting as well practical experience describe challenges encountered in assessing green assets (absence heterogeneity data, differences definitions requirements, lack uniform methodology, limits rating schemes) also details climate risk measurement methodologies solutions employed by banks publishing their own disclosures, i.e. Bank England, Banque de France Magyar Nemzeti Bank.