Pensions and Retirement Training Course on Stress Testing for Climate Risks
Master Pensions Retirement Training with expert training. 10 Days course with certification. Comprehensive training program. Online & in-person. Enroll now!
Pensions And Retirement Courses10 DaysCertificate Included
Duration
10 Days
Mode
Online & Physical
Certificate
Included
Language
English
Course Overview
This course equips participants with the tools and methodologies needed to conduct robust stress testing of pension portfolios for climate-related financial risks. It explores how physical, transition, and liability risks impact pension funding, investments, and solvency. Participants will learn to apply scenario analysis, integrate ESG and climate data into risk frameworks, and align their approaches with regulatory and international climate standards.
Secure enrollment • Professional certificate included
Learning Objectives
By the end of the course, participants will be able to:
Understand climate-related financial risks and their relevance to pension funds.
Differentiate between physical, transition, and liability climate risks.
Conduct stress tests and scenario analysis for climate risk exposure.
Integrate climate factors into asset-liability management and funding strategies.
Apply frameworks from the TCFD, NGFS, and other regulatory bodies.
Communicate climate risk stress test results to trustees and stakeholders effectively.
Develop governance structures to support ongoing climate risk assessment.
Course Content
Module 1: Introduction to Climate Risks in Pensions Understanding the link between climate change and pension fund stability Physical, transition, and liability climate risks Implications of climate risks on pension funding and investments Case study: How climate risks disrupted pension asset values Discussion: Why climate stress testing is now a regulatory priority Module 2: Global Frameworks for Climate Risk Assessment Overview of TCFD (Task Force on Climate-Related Financial Disclosures) recommendations NGFS (Network for Greening the Financial System) climate scenarios EU and international regulatory expectations Exercise: Mapping pension fund activities to global climate frameworks Discussion: Aligning fund governance with global standards Module 3: Identifying Climate Risk Drivers in Pension Portfolios Key risk drivers: carbon exposure, stranded assets, and policy shifts Assessing sectoral and geographic vulnerabilities Mapping investment holdings to climate-sensitive sectors Workshop: Identifying climate risk drivers in a sample pension portfolio Case study: Portfolio exposure to transition risk in energy and utilities Module 4: Data and Metrics for Climate Risk Measurement Sources of climate data: emissions, energy intensity, and ESG ratings Using climate-related Key Risk Indicators (KRIs) Quantitative vs. qualitative climate risk measures Exercise: Calculating climate exposure metrics for sample holdings Discussion: Data challenges and solutions for pension funds Module 5: Scenario Analysis for Climate Risks Building baseline, orderly, and disorderly transition scenarios Using NGFS and IEA climate pathways Linking climate scenarios to macroeconomic and investment impacts Workshop: Designing a climate risk scenario for a DB plan Case study: How global pension funds use scenario analysis Module 6: Stress Testing Methodologies for Climate Risk Frameworks for stress testing physical and transition risks Quantitative modeling and simulation techniques Integrating climate stress testing into solvency and capital adequacy Practical exercise: Running a simplified climate stress test on a sample fund Discussion: Translating stress test results into actionable insights Module 7: Asset-Liability Impacts and Funding Implications How climate risk affects asset values and liability valuations Incorporating climate shocks into ALM models Stress testing funding ratios and solvency levels Workshop: Linking climate stress results to funding strategies Case study: Pension fund funding resilience under climate scenarios Module 8: Risk Mitigation and Strategic Responses Adapting asset allocation and investment strategies Portfolio decarbonization, green investments, and diversification Managing transition risk through engagement and stewardship Exercise: Designing a risk mitigation plan post-stress test Discussion: Balancing fiduciary duty and sustainability objectives Module 9: Governance, Reporting, and Stakeholder Communication Establishing governance frameworks for climate risk management Disclosure requirements under TCFD and local regulations Communicating results to trustees, regulators, and members Group exercise: Preparing a climate stress testing report Case study: Effective climate risk communication by pension funds Module 10: Case Studies and Practical Applications Real-world examples of climate stress testing in pension funds Group simulation: Conducting a full climate stress testing cycle Interpreting results for investment, funding, and policy decisions Lessons learned and global best practices Final discussion, review, and certification
Who Should Attend
Pension Fund Managers, Risk Managers, Investment Analysts, Actuaries, ESG Specialists, Compliance Officers, Trustees, Financial Analysts, and Policy Advisors
