28. When setting scenarios involving environmental risks, institutions should consider …

When setting scenarios involving environmental risks, institutions should consider, consistently with the identification of the transmission channels, a number of intertwined factors to ensure that the scenarios are as relevant as possible. Namely, institutions should consider the following:

• a. socioeconomic context, i.e. assumptions about global or regional socio-economic conditions, including population growth, economic development and social inequalities; and other macroeconomic factors, including inflation and monetary policies, increased protectionism;
• b. technological evolution, i.e. the level and pace of innovation, technological adoption, and the availability of infrastructure to support new technologies;
• c. consumer preferences, i.e. potential shifts in consumers’ appetite for goods and services considered as sustainable, locally produced, healthy.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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