“The Good, the Bad and the Hot House World: Conceptual Underpinnings of the NGFS Scenarios and Suggestions for Improvement”

Irene Monasterolo is Professor of Climate Finance at EDHEC Business School and Research director “Finance impact on climate mitigation and adaptation” program at EDHEC Risk Climate Impact Institute in Nice (FR). In 2017, Irene published the climate stress test of the financial system that introduced the framework to translate climate scenarios into adjustment in financial valuation and portfolio risk. It includes the Climate Policy Relevant Sectors, a science-based classification of assets’ exposure to climate transition risk that has been applied by several financial supervisors and institutions including the European Central Bank. Irene’s research has also investigated under which conditions green finance policies can foster the low-carbon transition while mitigating trade-offs with the EIRIN model, which has been applied by the World Bank to assess compound climate and COVID-19 risks, and by the European Central Bank to assess the double materiality of climate risks. Irene’s research has been published in top tier journals including Science and Nature Climate Change. She has collaborated with leading financial institutions, including the European Banking Authority, the European Insurance and Occupational and Pension Authority (EIOPA) and the G20 on climate financial risk disclosure and risk assessment.