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.