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 to capture real-world financial dynamics, historical financial and economic interactions and short and long-term investment horizons to translate our Ortec Finance Climate Scenarios into quantified impacts on returns across all asset classes and macroeconomic variables.
Our overall approach delivers a real-world assessment on how climate change could impact financial markets by considering implications for future asset values, investor sentiment and market overreaction as well as the timing and velocity of systemic responses.
Economic Scenario Generator in one minute
Making climate-informed investment decisions
When combined with the Ortec Finance Scenario set (OFS), this helps financial institutions to:
Quantify climate change’s impact on returns beyond equities and limited macroeconomic variables to detailed asset classes, benchmarks and sector holdings
Capture the impacts arising from the insufficient pricing-in of climate risks
Combine traditional risk and climate risk analysis results and evaluate both risks within ALM studies
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.
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.
About ClimateMAPS
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