The UK’s Institute & Faculty of Actuaries (IFoA) says users of climate risk models may put too much weight on the results of scenarios selected for regulatory stress tests

Financial institutions should use a diversity of climate scenarios, both quantitative and qualitative, to ensure that the outputs are consistent with the economic implications of physical climate impacts in a ‘hot house’ world

Many models using traditional economic modeling applied to climate change scenarios produce overly benign results that significantly understate the true risk that financial institutions face