David K.A. Mordecai was Invited to Participate in Institute of International Bankers Climate Change Scenario Analyses Webinar
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Dr. David K.A. Mordecai was invited to participate in the Institute of International Bankers (IIB) Climate Change Scenario Analyses webinar. The webinar was held on November 8, 2021, and was co-hosted by Cushman & Wakefield and CoreLogic.

The agenda for the webinar posed the following questions:

  • For large US-based international and national banks, what climate-related data will be required under regulatory reporting?
  • How will climate risk be scored?
  • Will climate risk scoring influence credit availability to certain borrowers?
  • How will Greenhouse Gas (GHG) emissions, physical risks and transition risks be measured and managed?

David Mordecai primarily discussed the role of transition risk and contingent liability analysis in stress-testing corporate and municipal cost structures via transmission channels (e.g., credit spread volatility, funding illiquidity, commodity supply/demand shocks, and telecommunications, electricity and transportation network traffic) corresponding to climate-related regional weather volatility. He further highlighted the need to broaden the definition and scope of climate risks and stranded assets, as well as the necessity for rigorous scientific measurement of pertinent weather volatility statistics, and corresponding economic exposure to damage (particularly at the relevant temporal and spatial scales, i.e., mesoscale conditions and events).

The panel was moderated by David L. Risdon, Senior Managing Director and Head of Banking & Regulatory Solutions, Cushman & Wakefield. The panelists were the following:

The webinar can be viewed here.

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