FINANCE FOR IMPACT successfully conducted and presented a Climate Stress Testing Simulation for the Tanzania Agricultural Development Bank (TADB) on 10 April 2025 at TADB’s headquarters in Dar es Salaam.
The simulation was part of a broader effort to strengthen TADB’s ability to assess and manage climate-related financial risks. Led by Thierry Senechal of FINANCE FOR IMPACT, the session introduced a robust Climate Risk Stress Testing (CRST) framework tailored to the Tanzanian context. The framework included modules for analyzing both acute physical risks—such as floods—and chronic and transition risks tied to long-term climate change impacts and policy shifts.
Participants from TADB engaged actively in the exercise, which emphasized how climate change could affect the bank’s credit portfolio through increases in Non-Performing Loans (NPLs) and provided strategies for risk mitigation. Using real portfolio data and NGFS climate scenarios, the simulation demonstrated the potential financial impacts of various climate risk pathways and the importance of early adaptation.
The exercise underlined TADB’s commitment to strengthening its climate risk management capacities and aligning with international best practices. FINANCE FOR IMPACT continues to support financial institutions globally in enhancing their climate resilience and integrating climate considerations into their strategic decision-making processes.