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FCA admits TREX to regulatory sandbox, tests advanced climate risk modelling

·Source: Finextra

Updated:

Executive Summary

The Financial Conduct Authority (FCA) has onboarded Transition Risk Exeter Ltd (TREX) into its regulatory sandbox to test whether its approach to climate scenario analysis can provide financial firms a clearer view of physical risks like flooding or heatwaves, as well as risks linked to the move to a low-carbon economy.

Analysis

The Financial Conduct Authority (FCA) has onboarded Transition Risk Exeter Ltd (TREX) into its regulatory sandbox to test whether its approach to climate scenario analysis can provide financial firms a clearer view of physical risks like flooding or heatwaves, as well as risks linked to the move to a low-carbon economy.
Source Attribution

Originally published by Finextra on Jun 26, 2026.

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