In addition, the quality of education is at least as important as the number of years of formal schooling. This is usually measured by a number of indicators, including pupil-to- teacher ratios, the educational level of teachers, and students’ performance in internationally standardised tests.
Climate scenario analysis identifies climate-related physical and transition risk factors facing financial firms, formulates appropriate stresses of those risk factors under different scenarios, and measures their effects on individual firms and the financial system as a whole. To be clear, scenario analysis is distinct from our traditional regulatory stress tests at banks.