Unlike traditional investment risks, climate change-related risks are characterized by fundamental uncertainty and a lack of historical data. UK pension funds, as key asset owners, recognize that climate change poses a significant financial threat.
Ortec Finance’s ‘Climate risk assessment – Top 30 UK pension funds’ compares the climate risk exposure and resilience of the Top 30 UK 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 UK pension funds.
- Physical risks are expected to have the greatest negative impact on the UK pension funds’ investment portfolios in the long-term.
- The greatest harm to a UK 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.
- Real estate and equities are identified as the two most vulnerable asset classes for the UK pension funds analyzed.
Download the report – Climate risk assessment – Top 30 UK 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