Sustainable Investment

The impact of climate change on the global economy is likely to be significant and long-lasting. Advances in technology, policy action by governments and the physical effects of climate change will combine to reshape the investment landscape radically.

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:

The analysis provides the key economic indicators that you need to develop ‘climate risk-aware’, sustainable investment portfolios.

Some challenging questions we can help you answer:

Our Sustainable Investment work

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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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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Sustainable investment: investing in a time of climate change

We help financial institutions plan for the future and implement the recommendations of the Task-force on Climate-related Financial Disclosures (TCFD) using our in-house macroeconomic model: We provide you with: national and global analysis of the transitional impacts a...

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Mercer: Investing in a Time of Climate Change – The Sequel

Commissioned by Mercer, 'Investing in a Time of Climate Change - The Sequel' presents the results of climate scenario analysis assessing the effects of climate related physical risks and the transition to a low-carbon economy. The report looks at the consequences on the invest...

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View all Sustainable Investment work

For more information on our work in Sustainable Investment, contact:

János Hidi Sustainable Investment Manager [email protected]