Climate Risk Analyst

What Does a Climate Risk Analyst Do?

Climate risk analysts assess how physical risks (floods, droughts, heatwaves) and transition risks (carbon pricing, regulation, stranded assets) affect portfolios, assets, and business operations. They build quantitative models using IPCC scenarios, NGFS pathways, and proprietary climate data to inform investment strategies, insurance pricing, and corporate resilience plans.

The role has exploded in demand since the ECB, Bank of England, and other central banks began requiring climate stress tests. The EU Taxonomy, CSRD, and Solvency II sustainability amendments now mandate climate risk integration into financial reporting, making this one of the fastest-growing roles in green finance.

Salaries range from EUR 42,000 for junior analysts to EUR 100,000+ for senior climate risk managers in banking and insurance. London, Amsterdam, Frankfurt, and Zurich are major hubs, though remote opportunities are expanding rapidly.

Key Responsibilities

• Model physical and transition climate risk scenarios for investment portfolios
• Conduct TCFD-aligned climate risk assessments and disclosures
• Develop climate stress tests for regulatory compliance (ECB, PRA, EIOPA)
• Analyse carbon pricing impacts and stranded asset exposure
• Build geospatial climate risk models using satellite and climate data
• Advise on EU Taxonomy alignment and sustainable finance regulation

Required Education

• Master’s in Finance, Climate Science, Environmental Economics, or Data Science
• CFA ESG or GARP SCR certification strongly preferred
• Advanced Python, R, or MATLAB for quantitative modelling
• Knowledge of NGFS scenarios, IPCC pathways, and catastrophe models

Career Development

1. Junior Climate / ESG Analyst - data gathering, basic modelling, and reporting support (0-2 yr.)
2. Climate Risk Analyst - independent scenario analysis and client advisory (2-5 yr.)
3. Senior Climate Risk Manager - portfolio-level strategy and regulatory engagement (5-8 yr.)
4. Head of Climate Risk / Chief Sustainability Risk Officer - enterprise risk leadership (8+ yr.)