Understanding the social risks posed by climate transition requires discipline, nuance and a systematic approach.

Naturally, the recent banking crises in the US and Europe raise concerns about EM exposure to financial sector risks too. We’ve found that the EM financial sector overall looks strong and resilient—but that several individual EM countries’ banks could be vulnerable.

Russia’s invasion of Ukraine has shocked the global economy, in particular by fueling further spikes in energy and commodity prices. The new inflationary catalysts will have differing effects on monetary policy moves because regional economies are starting from different places, which will determine their ability to withstand higher commodity prices.

The United Nations Glasgow Climate Change Conference, also known as COP26, concluded in November with 200 nations signing the Glasgow Climate Pact (GCP), an agreement that could accelerate climate action and drive big carbon cuts.