While this is welcome news, CCPs (Central Counterparties) need to continuously review their model performance. Given the potential impact of climate risks on financial markets and consequently on CCPs (Central Counterparties), all CCPs need to evaluate how to integrate climate change-related risk adequately into their risk models.
By taking climate risks more into account, CCPs (Central Counterparties) – in their capacity as intermediaries – could play a role in adequately mitigating the transfer of climate risks to financial markets. The journey has just begun: Although a lot has been achieved, there is still a lack of uniform standards applicable worldwide.