Ortec Finance updates its climate scenario analysis offering to include NGFS Phase IV climate scenarios

Ortec Finance, a leading provider of technology and solutions for risk and return management for financial institutions, announces the update of the Ortec Finance NGFS-based climate economic and financial datasets under its ClimateMAPS – climate scenario analysis solution. The latest update follows the recent release of its annual update to Ortec Finance Climate Scenarios, in exclusive partnership with Cambridge Econometrics.

The latest update reflects the changes that the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) made in 2023, released as their Phase IV climate scenarios, including the addition of a new ‘Low Demand’ and ‘Fragmented World’ scenario. Compared to the previous NGFS Phase III datasets, the updated datasets feature stronger transition risk impacts and expanded coverage of acute physical risks, incorporating additional extreme weather perils and country-specific data. 

Ortec Finance has translated six of the NGFS Phase IV scenarios into over 600 economic and financial variables via its proprietary economic scenario generator, covering all major asset classes, geographies and conventional financial benchmarks. All economic and asset class impacts are presented relative to a baseline with 2°C to 3°C degrees warming, in line with Ortec Finance’s earlier integrated economic and climate scenarios release and are available as dynamic charts within their interactive Climate Scenario Explorer web-based dashboard. 

Bronwyn Claire, Climate Science Lead, Ortec Finance said: “We are pleased to able to offer institutional investors the ability to facilitate a quantified assessment of the impacts of climate change on their investment portfolios under the latest set of climate scenarios made available by NGFS in addition to our proprietary in-house Ortec Finance Climate Scenarios and bespoke scenarios. As part of our commitment to supporting the investment community in addressing climate change, we look forward to continuing to help them meet their specific objectives across stress-testing, strategic asset allocation, peer benchmarking and disclosure and reporting with one of the most advanced top-down climate risk analysis tools available on the market."

Want to learn more about the NGFS Phase IV climate scenarios? 

Our blog, The latest release of NGFS climate scenarios – Key highlights for institutional investors, discusses the updates and changes in this release’ approach to assessing climate transition, physical and market risks in comparison to the previous edition. 

About ClimateMAPS 

ClimateMAPS - Ortec Finance’s award-winning climate scenario analysis solution, offered in exclusive partnership with Cambridge Econometrics, enables financial institutions to quantify their portfolio’s climate risk exposure and identify opportunities relative to a baseline with 2°C to 3 °C degrees warming. With global coverage of over 600+ economic and financial variables, ClimateMAPS provides comprehensive insights to help financial institutions translate the impact of climate change on investments.