Ortec Finance, a leading global provider of technology and solutions for risk and return management for investors, has incorporated climate change into its economic scenarios, providing investors with the industry’s first integrated economic and climate risk management tool.
The results included in Ortec Finance’s latest quarterly release of its economic scenarios are broadly in line with the current view that temperatures are likely to rise by 2 to 3°C by 2100, based on the current trajectory.
Ortec Finance’s pioneering approach incorporates data from 28 reference climate scenarios, taken from a comprehensive range of sources, including the Network for Greening the Financial System (NGFS) and the Inevitable Policy Response (IPR), and across multiple macroeconomic and financial market variables, countries and horizons. This data is mapped onto stochastic economic scenarios on a probability interval basis, revealing frequencies in comparison to, for example, the 2 to 3°C reference climate scenarios.
The enhanced economic scenarios go hand in hand with Ortec Finance’s in-house suite of narrative-based climate scenarios that explore a wide variety of potential climate-related economic and financial market impacts. This unique combination of economic scenarios and climate scenarios provides one of the most comprehensive risk management tools available to institutional investors.
Hens Steehouwer, Chief Innovation Officer at Ortec Finance, commented: “This pragmatic yet powerful solution reflects the urgent need to address the potential impact of climate change on investment portfolios globally. The integration of climate scenarios into economic scenarios supports investor’s initiatives to combine and integrate results from climate risk analysis and traditional investment risk analysis to drive their investment decision-making.
Integrating climate change into investment decision-making
Learn more about our approach to integrating climate risks into investment decision-making.
More information?
For more information, contact:
James Verstringhe
Tavistock Communications
Tel: +44 20 7920 3150
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