Understanding climate risk

In a world of net zero commitments, new technology and increasingly frequent and severe natural disasters, the global finance sector is facing increasing pressure to identify and manage the transitional and physical risks and opportunities of climate change.

Our sustainable investment experts support investment managers, pension plans, wealth funds, insurance companies and banks in quantifying their portfolios’ exposure to climate-related risk. We do so through our TCFD-aligned advanced macroeconomic climate scenario capabilities.  
 
If you’re looking into sustainable investment, clear insights on the scale and distribution of climate-related risk over time are vital to any decision. Our climate risk analysis experts will use the latest modelling innovation and data-driven insights, working closely with you to provide clear understanding of the risk involved – by detailed economic sectors and covering all of the world’s major economies.
  
We can also show how climate-related risks and opportunities are affected by fundamental uncertainties arising from abrupt changes in geopolitics, fundamental shifts in world trade patterns, and the rapid adoption of new technologies like Artificial Intelligence.

Partnership with Trex

Cambridge Econometrics has an exclusive partnership with Trex, a University of Exeter spin out, through TPS Climate powered by E3ME. TPS Climate is a platform designed to help financial institutions better understand climate risk in an increasingly uncertain world.

TPS Climate
E3ME
Economic Modelling

TPS Climate

Trex TPS Climate combines unique non-linear macroeconomic modelling, system-level dynamics and asset-level data to assess climate risks across regions, sectors and companies.

The platform captures both top down and bottom-up transition and physical risks, including tail risks, compounding shocks and tipping points, and links these to near-term, decision-relevant investment horizons. It is delivered as decision-ready intelligence or integrated data streams that feed internal models and AI workflows.

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E3ME

E3ME is our global macroeconomic model for comprehensive and tailored assessment of the different impacts of policy scenarios, producing an extensive range of indicators for different sectors, world regions, emissions and technologies.

Developed and maintained by our team of in-house modelling specialists for over 25 years, E3ME is one of the most advanced models of its type in the world, supported by a large and growing body of peer-reviewed academic work.

Using E3ME, we have supported clients and partners through scenario analysis to inform thousands of strategies, campaigns and policies. E3ME analysis has been recognised and featured in work by leading global organisations including the World Bank, the United Nations, the European Commission, the International Labour Organisation and the White House Office for Management and Budget.

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Economic Modelling

The product of over 50 years of economic research and collaboration with academic experts, our team is trusted by clients and partners around the world to model scenarios tailored to their specific needs.

Our diverse topic base spans industries, sectors and geographies. This reach, coupled with our interdisciplinary partnerships with academic and industry experts, means we’re constantly grappling with the latest issues of our time – actively learning and investing in our economic modelling capabilities.

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