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.
Quantifying climate-related financial risk
E3ME is recognised globally as one of the leading models for comprehensive economic modelling of policy and technology scenarios. We have worked with a range of governments, international organisations, central banks and financial institutions to deliver high quality climate scenario inputs, equipping our clients to make decisions with confidence
Designed to assess global policy challenges, e3me uses behavioural equations and accounting identities to simulate interactions and dynamics of the economy for scenario analysis.
Our model can test the impact of different global temperature pathways (1.5˚C, 2˚C, 3˚C and 4˚C) and assess the impact of different climate related risks:
- Roll-out of new low carbon technologies
- Physical manifestations of climate change
- Policy action to mitigate climate change
- Sectoral and geographical breakdown of associated risks
Some challenging questions we can help you answer:
- What are the climate-related risk and opportunity profiles of different economic sectors and geographies?
- Are climate exposures reflected in our risk assessment processes and TCFD-compliant reporting?
- How will the climate transition in the real economy impact macrofinancial stability?
Mercer: Investing in a Time of Climate Change – The Sequel
The Role of Climate Change Scenarios In Investment Portfolios
Climate impact assessment for the Central Bank of Hungary
Private: Sustainable investment: investing in a time of climate change
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