Sustainability risks and chances


To reach the Paris climate targets, climate neutrality must be achieved on a global level in the first half of the 21st century. The financial sector has an important role to play in the transition towards a climate-friendly economy.

Aside from the physical risks of climate change, such as crop failures, floods, or droughts, there are far-reaching transition risks, e.g., through climate polices or technological breakthroughs, which affect both industrial companies and financial actors. What conditions allow companies to identify transition opportunities and risks and to consider them sufficiently in their investment decisions? What is the financial sector’s contribution and how can climate risks be measured and implemented in risk management?


Research topics:

  • Scenario analysis and stress testing
  • Risk analysis and management
  • Business strategy
  • Transition
  • Economic transformation
  • Financial market stability
  • Climate neutrality


  • Policy Brief, Sustainability Risks and Opportunities

    PB 3/2023: Climate transition plans: State of play in EU legislation and policy recommendations

    Company transition plans (of real economy and financial market actors) have the potential to become a steering instrument for directing capital flows toward climate neutrality…

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  • Policy Brief, Sustainability Risks and Opportunities

    PB 6/2022: The first ECB bottom-up climate stress test: dealing with data gaps and methodological challenges

    The ECB’s “SSM Climate risk stress test,” published in July 2022, provides an important step toward integrating climate change related risks into the banking system.…

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  • Policy Brief, Sustainability Reporting, Sustainability Risks and Opportunities

    PB 5/2022: Standardized stress test scenario can improve climate risk reporting

    More and more countries, regions, cities, companies, and financial institutions are defining climate neutrality as a strategic goal. So far, however, it is not possible…

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  • Policy Brief, Sustainability Reporting, Sustainability Risks and Opportunities

    PB 9/2021: The EU sustainable finance strategy – Implications for the future German Federal Government

    The EU’s revised sustainable finance strategy confirms the important role of the financial sector in the sustainability transition of the economy, but does not sufficiently…

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  • Policy Brief, Sustainability Risks and Opportunities

    PB 5/2021: Scenario Analysis as a Tool for Companies, Investors, and Regulators on the Path to Climate Neutrality

    The structural transformation necessary for achieving climate neutrality is characterized by many interdependent changes. Shaping the transition to a zero-emissions economy cannot be based on…

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Alle Publikationen anzeigen


  • Singapore Media article

    „Greenhouse Gas Protocol: Asia-Pacific firms have work cut out on meeting climate-disclosure requirements, executive implementing standard says“

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  • News, Sustainability reporting

    Alexander Bassen leads GHG Protocol’s new Independent Standards Board

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  • News

    Invitation to the WPSF Research Seminar

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  • Media article

    More than ‘green’ and ‘brown’: How sustainable finance can enable the transition

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