What question did this study set out to answer?

This research aims to create a framework for measuring climate resilience in relation to credit risk assessments.

Climate Resilience Score: Measuring Environmental Vulnerability for Credit Risk Assessment

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Randomized trial evaluates climate resilience in banking sectors, suggesting improvements in credit risk assessments.

This research aims to create a framework for measuring climate resilience in relation to credit risk assessments.
Developed a Climate Resilience Score (CRS) integrating multiple indicators of vulnerability.
Utilized the Analytic Hierarchy Process (AHP) for index construction.
Aligned the CRS with European Green Deal priorities and conducted empirical robustness checks.
The CRS combines indicators like energy efficiency and emission intensity for a holistic view.
While not quantitatively tested against default models, CRS aids in portfolio management and scenario analysis.
The framework is scalable and can enhance how banks assess environmental vulnerabilities.

Febo et al. (2026) studied this question.

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