Natasha CHAUDHARY
Research Fellow – Prudential transition plans, Climate risksNatasha joined I4CE in 2023 and works as a Research Fellow on European union financial regulation topics such as prudential banking transition plans and climate risk management. In doing so, she particularly focuses on the prudential oversight for stranded asset management.
Natasha has a background in financial risk management, having worked for 8 years with major EU banks such as Société Générale and BNP Paribas. She was a risk analyst covering activities related to market risk management including risk monitoring and reporting. She worked on various asset classes with a particular focus on commodities markets. Later as a project manager, she also led projects for the industrialization of risk processes and pricing models.
She holds an MBA in Financial Management from Christ University, Bangalore. She speaks French, English and Hindi.
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28/06/2024
Climate Report
From Stranded Assets to Assets-at-Risk: Reframing the narrative for European private financial institutions
Private financial institutions must rethink their approach to managing stranded asset risks. The current narrative on quantifying fossil fuel sector exposures within a limited scope of financial portfolios (mostly loans) largely underestimates potential stranding losses. As the low-carbon transition impacts all economic sectors, private financial institutions (FIs) must consider material transition-driven stranding risks within their overall transition risk management framework using a ‘whole of economy’ lens. Traditional risk management approaches are ill-suited to the methodological and quantification challenges of transition-driven stranding risks, so a flexible, dynamic, forward-looking approach is necessary. Strong, incentivising public policy coordinated with financial regulatory and supervisory impetus is necessary to preemptively identify, monitor and manage stranding losses on ‘assets-at-risk’ (i.e., potential stranded assets). The ECB finds that 40% of the total loan portfolio of euro area banks is exposed to energy-intensive sectors*, making them vulnerable to transition risks, including stranding. It is time for an urgent reframing of the stranded asset narrative to avoid significant financial losses (endangering financial stability) and direct orderly transition finance flows to retire or transform assets-at-risk before they become fully stranded. -
07/06/2024
Foreword of the week
EU election time: climate policy and finance challenges under scrutiny
This weekend, citizens across the EU head to the polls. Many expect a swing to the right, in stark contrast to the “green wave” of 2019. In Brussels, leaders are looking ahead to a five-year mandate dominated by questions of security and competitiveness. In these turbulent times, what is the future of Europe’s flagship climate package, the Green Deal? The Green Deal and the Fit for 55 package gave us the regulatory framework – but implementation requires investment. I4CE's flagship EU Climate Investment Deficit report shows that climate spending must double to make the 2030 target achievable. -
11/04/2024
Special issues
I4CE’s recommendations to the Basel Committee on the disclosure of climate-related risks
After a first step in 2022, the Basel Committee on Banking supervision is finally moving towards regulation for climate-related risks. Founded in 1974, this forum brings together financial supervisors of the G20 countries and establishes the common standards for financial stability. Two years ago, the Committee published a consultative document on the principles of climate […]