Sustainable Investing for Investment Managers
At Cambridge Econometrics, we understand the critical importance of successfully transitioning your portfolios into a decarbonised world and the scale of this challenge.
We are here to help you assess the climate-related risks of your portfolios, whether that is transitional or physical, using a TCFD-aligned model of the global economy to quantify exposure to climate-related risk.
Climate risk scenario analysis
Partnership with Ortec Finance
In partnership with Ortec Finance, we offer ClimateMAPS, an Award-winning service that generates forward-looking risk-return analytics to map a portfolio’s exposure to climate risk and opportunities. The solution is independent and distinctive, has comprehensive risk coverage and is customizable to client-specific assumptions. It can be widely utilised by financial institutions, ranging from investigating the financial impacts of different climate pathways to reporting to stakeholders in line with TCFD recommendations.
The resulting systemic climate risk-aware scenarios provide a unique set of quantified climate-adjusted economic and financial outlooks up to 2060 differentiated by country and global warming pathway.
Q. What is climate scenario analysis?
Using economic modelling, climate scenario analysis quantifies the impact of different policy scenarios for decarbonisation on a range of economic indicators such as GDP, asset and commodity prices, and sectoral growth prospects. It helps investors gain essential insights into the affects and risks of different policy approaches to transitioning to a low carbon economy on their portfolio, and how best to transition to more sustainable investing.
Q. How exposed is my portfolio to the physical and transitional risks of climate change?
The future value of your investment portfolio will depend on what decarbonisation pathway the world will follow. The low-carbon policies implemented by each country and their timing will have an essential role in determining what transition and physical impacts there will be on your portfolio. Our climate scenario analysis helps to quantify these affects at a granular sector/geography level.
Q. Are your scenarios compliant?
Yes. Our scenarios are in line with the Network for Greening the Financial System’s scenario requirements, and compliant with TCFD guidelines.
3 global climate policy insights from 2022 that will still matter in 2023
3 global climate policy insights from 2022 that will still matter in 2023
As we enter 2023, what should global climate policymakers be considering if real tangible change is to be made? Drawing on our latest work with clients from around the world, our experts choose three insights that could make a real impact on the deployment of just and fair climat…
3 steps to prepare your portfolio for climate change
3 steps to prepare your portfolio for climate change
The pressure is mounting for the finance sector to disclose climate-related risks.
Our Sustainable Investment Manager János Hidi breaks down how to understand, quantify and manage your portfolio’s risks, including the data insights that are needed for an effective risk assess…
Keeping 1.5°C alive: Credible policies and innovation can take us there
Keeping 1.5°C alive: Credible policies and innovation can take us there
In the face of slow progress on decarbonisation and mounting climate research suggesting a pending climate catastrophe without faster efforts to reduce emissions, there has been a recent wave of calls to abandon the 1.5°C warming target all together. This is despite the economic…
Our Sustainable Investment work
GIC: Integrating Climate Scenario Analysis into Investment Management – 2023 update
GIC: The Role of Climate Change Scenarios In Investment Portfolios
Have the NGFS and the Bank of England missed an opportunity to drive the race to net zero?
Central Bank of Hungary: Climate impact assessment for the Central Bank of Hungary
Mercer: Investing in a Time of Climate Change – The Sequel
