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Sustainability-related risks

The ability of banks, asset managers and insurers to identify and manage risks and absorb financial losses potentially arising from them, is key for financial stability.

The JRC develops research to monitor and assess:

(i) risks for financial institutions from being exposed to economic activities that will need to be abandoned in the green transition;

(ii) impacts of catastrophic events on financial institutions;

(iii) long term consequences of a loss of biodiversity and ecosystem services or a strengthening of biodiversity protection that could lead to stranded assets.

The JRC supports the Commission department for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) by providing scientific and technical advice in the context of several policy initiatives, starting with the 2018 Action plan to finance sustainable growth.

Currently, the JRC supports the implementation of the actions listed in the EC Strategy for Financing the Transition to a Sustainable Economy and the new EC Strategy on Adaptation to Climate Change.

We also support the work of the European Systemic Risk Board on the quantification of transition and physical risks related to climate change, by providing scientific evidence and data on natural disasters from the JRC risk data hub, as well as by developing models for climate stress-testing.

Contact us

JRC-FINANCEatec [dot] europa [dot] eu

To find out more about the JRC's work on similar topics, explore the related JRC portfolios: