Recently, Moody’s organized a forum in Bangkok with The Thai Bankers’ Association. The event gathered professionals from financial institutions, regulatory bodies, and corporations across Asia to discuss sustainable resilience in managing physical and transition risks. The discussions focused on adapting to evolving regulations and building long-term resilience through smarter risk management, strategic financing, and policy alignment.

The forum provided a platform for banks and corporations to share best practices, regulatory insights, and strategies for addressing these risks. With Thailand's 2065 Net Zero target as a focal point, there was an emphasis on the need for cross-sector collaboration to progress toward sustainability goals.

Stephen Tulenko stated: "As physical and transition risks become increasingly recognized as core business risks, organizations face growing pressure to move beyond regulatory compliance and toward strategic integration."

One of the key takeaways was that effective stress testing requires bridging the gap between framework and execution. Organizations need robust data infrastructure, scenario planning, and integration of physical risk into credit assessments.

Another insight highlighted the importance of aligning global frameworks with local execution. Thailand is working towards global standards like NGFS by translating ambitions into actionable strategies.

Transition finance emerged as crucial for sustainable growth. Financial institutions must embed sustainability into decisions while ensuring initiatives are economically viable. Stephen Tulenko noted: "A scalable, well-structured transition finance ecosystem will be key to achieving national net-zero targets."

The forum concluded that tackling these risks requires collaboration across sectors. Moody’s aids banks in integrating these risks with data analytics that highlight vulnerabilities.