Quantifying climate scenarios into asset class and macroeconomic impacts via our Economic Scenario Generator
Our ClimateMAPS – climate scenario analysis solution, utilizes our independent Economic Scenario Generator and the Ortec Finance Scenario set (OFS) to translate our proprietary Ortec Finance Climate Scenarios and the NGFS Phase IV climate scenarios into all asset classes and macroeconomic variables.
How does the OFS help assess climate-related market risks?
The OFS incorporates Ortec Finance’s Economic Scenario Generator, expertise and market insights to reflect realistic scenario assumptions, known as Ortec Finance’s house view.
The realistic scenario assumptions incorporate climate change’s impact by benchmarking stochastic scenarios against a broad range of climate scenarios from various sources and models.
The impacts on macroeconomic variables and returns from asset classes presented relative to a reference baseline generated from the house view, currently being between 2°C to 3 °C degrees warming.
This overall approach forms part of our release of integrated economic and climate scenarios, which enables investors to integrate climate risk analysis results with traditional risk return analysis outcomes.
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Learn more about the differences between the Ortec Finance Climate Scenarios and the NGFS Phase IV climate scenarios here. |
Further insights
- Integrating economic and climate scenarios – Learn how the unique combination of Ortec Finance’s economic scenarios and narrative-based climate scenarios can help investors to integrate climate change into their decision making in a consistent and seamless way.
- From climate risk analysis to investment decision making – Understand how economic scenarios and narrative-based climate scenarios can be utilized together to incorporate climate risk into investment decision-making
- The fundamentals of climate scenario analysis for investors - Find out how climate scenario analysis can specifically help investors understand climate change's impact on investments.
- Unlocking the true value of climate scenarios – Discover the differences between the various types of narrative-based climate scenarios.
Climate Scenarios & Sustainability
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