Mercer collaborates with Ortec Finance and Cambridge Econometrics on climate crisis portfolio modelling

As climate change continues to climb the investment risk agenda of decision makers worldwide, Mercer has taken the proactive step to enter a global collaboration with Ortec Finance, a leading provider of risk and return management technology and solutions.

With strategic partners of Ortec Finance, Cambridge Econometrics will be providing world class climate scenario analysis for this new collaboration. Our climate scenario analysis allows for a detailed policy impact assessment with a granular sectoral and geographical coverage.

János Hidi, Sustainable Investment Manager at Cambridge Econometrics commented,

We are proud to collaborate with Ortec Finance and Mercer to help clients quantify climate related risks and opportunities using our world class climate scenario analysis. It provides a robust real economy foundation for financial risk assessments.

The scenario analysis, covering both assets and liabilities, is in line with Task Force on Climate-related Financial Disclosures (TCFD) reporting, which is required for UK pension schemes falling under the UK’s Climate Change Governance and Reporting Regulations.

Lisa Eichler, Co-Head Climate and ESG Solutions, Ortec Finance, commented:

Climate policy and technology changes lead to complex interactions and network effects, climate change itself poses an underappreciated risk to investors via chronic changes and violent extreme weather.

From the outset, we worked with our modelling partners Cambridge Econometrics to design a modelling suite that provides answers to the most important questions for investors around climate risk.

Willemijn Verdegaal, Co-Head Climate and ESG Solutions, Ortec Finance, added:

An unrivalled amount of academic rigor goes into the scenarios, including input from Cambridge Econometrics and being able to combine that with Mercer’s scale and the depth of expertise of their people is formidable recognition of the credibility of what we deliver to clients around the world.

Find out more about the collaboration here and our Sustainable Investment service here.