While the time horizon for conventional stress testing is two to three years, assessing climate-related risks requires a quantitative understanding of the situation over a much longer horizon of several decades. Partly for these reasons, scenario analysis is still in its infancy. 9  Scenario analysis is now being undertaken in many countries. Please refer to Slide 6.
According to a survey by the Financial Stability Board (FSB) and the NGFS, as of November 2022, about 40 countries or regions had already conducted or are planning to conduct scenario analysis.