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Unlike traditional investment risks, climate change-related risks are characterized by fundamental uncertainty and a lack of historical data. Canadian pension funds, as key asset owners, recognize that climate change poses a significant financial threat.
Ortec Finance’s ‘Climate risk assessment – Top 30 Canadian pension funds’ compares the climate risk exposure and resilience of the Top 30 Canadian pension funds by quantifying the annual, cumulative and cumulative annualized impacts of their portfolio at an asset class level under the 2024 Ortec Finance Climate Scenarios.
Discover how and why our analysis shows that:
- Transition risk is the most significant and imminent climate risk facing Canadian pension funds.
- Physical risks are expected to have the greatest negative impact on the Canadian pension funds’ investment portfolios in the long-term.
- The greatest harm to a Canadian pension fund’s investment portfolio is likely to arise from either: 1) short-term drastic and uncoordinated policy changes or 2) long-term failure to undertake the low-carbon transition.
- The Canadian pension funds considered in this this analysis have significant exposure to high-risk assets.
- In the short term, declining equity returns could weigh heavily on the Canadian pension industry.
Download the report – Climate risk assessment – Top 30 Canadian pension funds
This study utilizes a top-down climate scenario analysis approach has been undertaken with ClimateMAPS - Ortec Finance’s climate scenario analysis solution.
Learn more about the solution here.
Contact
Doruk Onal
Climate Risk Consultant