A research initiative created by Theia Finance Labs and the Oxford Sustainable Finance Group to develop a open-source climate stress test model suite

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We perform world-class research, develop software and assistance for central banks, supervisors and financial institutions to support the resilience of the financial system to climate and nature related risks

Our motivation

Climate and environmental risks are an unprecedented source of potential financial instability and require a new generation of analytical tools. But financial institutions and supervisors are not yet close to systematically integrating climate and environmental dimensions into risk management practices. Current capabilities are insufficiently adequate and not universally adopted, especially in highly vulnerable emerging and developing markets.

In response, we launched a research partnership between Theia Finance Labs (formerly 2°Investing Initiative Germany) and the Oxford Sustainable Finance Group to develop and maintain an open-source environmental stress testing model suite and related capacity building workflow

Meet our Team

1in1000 model suite

The 1in1000 model suite features modules on the impact of transition risk to financial portfolios, as well as physical and litigation risk impacts. The analytical tools are openly available. The 1in1000 initiative provides technical assistance for stakeholders and engagement partners to help enhance the resilience of the financial system to climate and nature-related risks.

The model is validated through peer-review academic publications and has been jointly developed by academics from the University of Oxford and analysts at Theia Finance Labs. The 1in1000 model suite is rooted in asset-level data and models climate-related financial risk in micro-economic and granular financial approaches. Key distinct features of the climate stress test are its forward-looking nature based on the transition strategy of firms, the explicit representation of technological costs and firms’ comparative advantage, the transparency and flexibility to accommodate for a wide range of scenarios and underlying modelling choices, and the ability to demonstrate sensitivities in all modelling stages.

Model interface

Engagement with Stakeholders

We engage with central banks, supervisors, financial institutions, policymakers, and international organisations to inform policy and to transfer expertise to less advanced stakeholders and assist in capacity building. We deliver world-leading training and capacity building to executive-level in the private and public sector. Linking expertise with ongoing training programs, including the new Oxford Public and Third Sector Academy
We provide technical assistance and co-produce analysis with stakeholders as part of funded projects. We emphasise working with institutions in less developed markets to level the playing field in the integration of climate and environmental considerations into risk management and supervisory practices.
We bring research into practice, helping our stakeholder network to build out research capability. We believe that a better exchange of knowledge, the diffusion of innovative tools and data is necessary, as well as scenario analysis that is grounded in science, realistic, transparent, and easy-to-use.

Partners and Stakeholders

Fund our Initiative

If you would like to learn more about our projects, or if you have a project in mind that you would like to fund and that fits into our strategy, please let us know.

Engage with our tools and metrics

We are always looking for people to help test our tools and give us feedback on how we can improve. Please contact us if you’re interested.

Engage with our content

We strive to have an impact on the world, but of course that doesn't happen in a vacuum and without discussions. So please let us know if you have any feedback on our strategy and content.

Contact Us