Assessing the impact of climate risks on the financial system

In the wake of 2015 Climate Paris Agreements to limit global temperature below 2°C above pre-industrial levels, many governmental and private stakeholders have advocated for the introduction of policies to mitigate climate change. This would affect directly only the fossil-fuel and utility sector, but it would also expose indirectly many other economic sectors, in particular the energy-intensive sectors. The financial system can be affected due to its exposure to firms in the form of equity