Forward Analytics partners with Ortec Finance to enhance their climate transition models

This new partnership enables Ortec Finance’s proprietary top-down climate scenarios to be used as inputs for Forward Analytics’ forward -looking climate transition models, which produce company and portfolio progress and risk indicators for public and private companies in climate critical sectors.

Forward Analytics provides transition-relevant data and climate risk models that help financial institutions identify and quantify climate transition risks and opportunities. The unprecedented granularity of the Forward Digital Twin™ links companies’ climate transition targets with their operational, revenue, and emissions profiles to quantify forward-looking transition progress and financial impacts across climate scenarios.

Ortec Finance’s climate scenarios, central to their top-down climate scenario analysis solution, ClimateMAPS, are widely used by pension funds, insurers and asset managers worldwide, as well as by other financial institutions, including banks to understand total portfolio climate risk exposure alongside traditional investment risks. It enables financial institutions to quantify climate change risks and identify opportunities across all asset classes, macroeconomic variables and sectors.

Together, Ortec Finance’s market leading real-world assessment of systemic transition, physical and market pricing risks  and Forward Analytics’ quantitative transition insight can optimise how financial institutions allocate transition capital.

"Scenario analysis is an important aspect of financial institutions’ transition risk framework and Ortec Finance is regarded as the leader in developing climate scenarios to model complex climate risks. By adding Ortec Finance’s scenarios alongside NGFS, IEA and Oxford University scenarios available in Forward Analytics’ transition models, users can align sophisticated, top-down sector impacts from Ortec Finance with Forward Analytics’ detailed company level assessments to distinguish sector leaders and laggards and track companies transition progress” said Andrea Blackman, Co-founder of Forward Analytics.

Maurits van Joolingen, Managing Director – Climate Scenarios & Sustainability at Ortec Finance added: “We are delighted to be working with Forward Analytics to help their clients effectively understand the systemic impacts of the climate transition from a holistic, enterprise-level perspective under a range of plausible futures, to better inform what actions need to be taken to further align with sustainability goals and successfully achieve their objectives.”

About Ortec Finance Climate Scenarios 

Ortec Finance Climate Scenarios, are a suite of deterministic climate scenarios developed to assess the financial impact of climate change. The scenarios utilise a proprietary extreme weather modelling tool to assess acute physical risks and draw on Cambridge Econometrics’ non-equilibrium modelling of the low carbon transition resulting from policy and technology innovation. In combination with Ortec Finance’s stochastic financial scenario set and independent Economic Scenario Generator, it generates economic and financial variables for all asset classes, geographies, sectors and conventional and low-carbon benchmarks. These variables incorporate pricing-in dynamics and financial market sentiment shocks.