Incorporating Climate Tipping Points into Regulatory Scenario Analysis

January 31, 2025


Tipping points are critical thresholds in the climate system where sudden changes can lead to dramatic environmental shifts. Ignoring such tipping points in financial institutions’ climate risk assessments could lead to inadequate preparedness for the future. In a new white paper, Conning discusses a novel approach to incorporating tipping points into a probabilistic simulation model, helping predict their potential effect on asset classes. Click here to read/learn more.