Michael Lebbon, Co-Founder and CEO of Emmi, discusses how climate risk is forcing banks and financial institutions to rethink how they assess uncertainty, particularly around extreme but increasingly plausible events. He explains why traditional views of climate scenarios as distant “tail risks” are no longer sufficient, and how regulatory pressure and real-world impacts are driving greater attention and investment in quantification.

He also outlines the importance of translating climate data into decision-useful insights that senior leaders can act on. Rather than treating climate risk as a standalone exercise, Lebbon argues for integrating it into broader balance sheet management, stress testing, and strategic planning to support more resilient, forward-looking decisions.