Our economists can map out the scale and distribution of climate-related risks, over time, by economic sector and by geography.
We use a model of the global economy to quantify exposure to climate-related risk. Developed over 20 years ago E3ME was designed by Cambridge Econometrics specifically for this type of analysis and is continually updated and refined. It can:
Test the impact of different global temperature pathways (1.5˚C, 2˚C, 3˚C and 4˚C) across regions and sectors; and
Assess the impact of different climate-related risks, including:
- Advances in energy technology which reduce the need for fossil fuels
- Policy action by governments to mitigate climate change, including carbon taxes, energy efficiency regulations and renewables subsidies; and
- The physical manifestation of climate change
The analysis provides the key economic indicators that you need to develop ‘climate risk-aware’, sustainable investment portfolios.