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Due to high demand, we are working to make each chapter accessible to the relevant participants. In this particular chapter, we will be featuring an expert for the session. Chapter 7: Climate Models and Scenario Analysis | Exam weightage: 8-12 questions This chapter describes how climate change risk can be modeled and analyzed through scenarios, which can help companies and financial institutions prepare for various possible physical and transition climate-related outcomes. The chapter begins with an introduction to scenario analysis as a general planning tool for companies before reviewing reference scenarios commonly used by climate scientists, policymakers, and corporations. The specific Learning Objectives for this chapter are as follows: • Define climate scenario analysis and explain how organizations use scenario analysis. • Explain the definition and purpose of global net-zero scenarios including carbon removal processes. • Understand IPCC scenarios and associated representative concentration pathways (RCPs) and shared socioeconomic pathways (SSPs). • Describe IEA scenarios and other key global reference scenarios. • Understand the key choices that organizations need to consider for scenario development and analysis. • Describe how scenarios and models are used in scenario analysis to assess transition risk. • Explain how scenario analysis is used for assessing physical risk. • Examine how all types of corporations (financial and non-financial) use climate scenario analysis. • Describe how financial firms use climate scenario analysis for the investment processes and climate risk exposure management. • Explain different aspects of climate scenario analysis using case studies.