How can financial institutions approach climate scenario analysis effectively to achieve their objectives?
There is an ever-increasing pressure on the global financial sector, from a regulatory, fiduciary and societal perspective, to understand the implications of climate change. Pension funds, insurance companies, sovereign wealth funds, asset managers and banks are seeking to manage their exposure to these financial impacts by integrating climate change into their investment process.
This has seen many financial institutions turn increasingly towards utilizing climate scenario analysis to identify climate change-related risks and opportunities within their portfolio. This has led to a growing range of available climate scenario options, which is creating confusion for financial institutions as to how they can select the most appropriate scenarios to achieve their objectives.
In our latest whitepaper, we describe the different types of climate scenarios available to help financial institutions understand which option will be most effective to align with their objectives.