Our Work

Below is a small selection of the work that we’ve carried out. Click on a topic to see relevant projects.

Investor short-termism needs to be fixed to ‘keep 1.5°C alive’

Sustainable Investment Manager János Hidi argues that if the finance sector is to successfully respond to the needs of the climate transition and decarbonisation policies laid out by COP26, investors must start broadening their horizons and shift away from short-term views of th...

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The Role of Climate Change Scenarios In Investment Portfolios

Commissioned by Singaporean investment entity GIC, this report presents the results of assessing the impact of climate scenario analysis on long term capital market returns. The climate transition will impact expected returns and market volatility due to climate-related transitio...

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Have the NGFS and the Bank of England missed an opportunity to drive the race to net zero?

Cambridge Econometrics conducted analysis with strategic partner Ortec Finance in response to two influential reports published in June 2021. The NGFS published its second iteration of climate scenarios, and the Bank of England published the second iteration of its Climate Bienni...

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Central banks are at the centre of a climate-induced economic transition

Sustainable Investment Manager János Hidi explores how central banks will be affected by climate change and why our global macroeconomic model E3ME is key to preparing for the economic transition that lies ahead. Central banks find themselves at the centre of a climate-induced ...

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Why climate scenario analysis is more than a tick-box exercise

János Hidi argues that investors must act now if they are to be prepared for the climate transition, taking climate scenario analysis to the next level. János introduces the key elements of Cambridge Econometric's global macroeconomic model E3ME that supports the Climate MAPS S...

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Global warming could melt our pension savings

Dóra Fazekas explores what impact climate change will have on assets and pension funds. Are fund managers already assessing these risks on savings? What do they need to adequately assess the threats and prepare for the challenges to come? A recent out of court settlement not ...

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Climate impact assessment for the Central Bank of Hungary

This study commissioned by the Central Bank of Hungary calculated the impacts of climate-related scenarios with varying levels of global climate action for the Hungarian economy. The research is unique in that in tackles a small country in Central Europe, which is usually not ...

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Spotlight interview: János Hidi

We recently welcomed Sustainable Investment Manager János Hidi to the Cambridge Econometrics team in Budapest. János will be taking forward our Sustainable Investment service at a critical time for the financial sector managing climate risk and building climate resilience. We ...

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Investing for sustainable growth

Andrew Sentance argues that to achieve a net zero economy by 2050 the UK government must invest now. The economic model that has developed in the UK and other major economies over the past 250 years of industrialisation and economic development is heavily dependent on the burnin...

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Climate change and financial risk: how economic models can help

In a series of speeches for the Bank of England in Spring 2020, Former Governor Mark Carney warned firms and investors that they must adapt to climate risks. Sophie Heald explains how models can be used to help quantify these risks. The last decade was the warmest ever. In rec...

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