Unlike traditional investment risks, climate change-related risks are characterized by fundamental uncertainty and a lack of historical data. US pension funds, as key asset owners, recognize that climate change poses a significant financial threat.
Ortec Finance’s ‘Climate risk assessment – Top 30 US pension funds’ compares the climate risk exposure and resilience of the Top 30 US 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:
- Physical risks are expected to have the greatest negative impact on the Top 30 US pension funds’ investment portfolios in the long-term, compared to other climate-related risks.
- The greatest harm to a Top 30 US 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.
- Why the US pension industry is particularly vulnerable to sudden or disruptive transition measures as a result of its substantial allocation to equities.
- Why the US pension fund industry’s sizable exposure to real estate and alternative investments such as private equity, and infrastructure exposes them to long-term physical risks.
Download the report – Climate risk assessment – Top 30 US pension funds
This study that 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
Maurits van Joolingen
Managing Director, Climate & ESG SolutionsRelated Insights
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