Ortec Finance, a leading provider of technology and solutions for risk and return management for financial institutions, has updated its NGFS-based climate economic and financial datasets within its ClimateMAPS – climate scenario analysis solution.
The latest update follows the recent release of its annual update to Ortec Finance Climate Scenarios, in exclusive partnership with Cambridge Econometrics. Compared the previous Phase IV release, the Phase V set reflects a notable update to the damage function used for assessing physical climate risks, increasing projected physical damages by two to four-fold by mid-century. This update removes the possibility to separately analyze gradual and acute physical impacts and continues to omit the potential effects of climate tipping points.
As with the previous Phase IV datasets, Ortec Finance has translated six of the NGFS Phase V scenarios into the full range of economic and financial variables using its proprietary economic scenario generator. The datasets covering all major asset classes, geographies and conventional financial benchmarks. All economic and asset class impacts are aligned with Ortec Finance’s integrated economic and climate scenarios approach and are available as dynamic charts within their interactive Climate Scenario Explorer web-based dashboard.
Bronwyn Claire, Senior Climate Specialist, Ortec Finance said; Following the NGFS’s inaugural release of short-term climate scenarios, we are pleased to offer institutional investors the opportunity to assess the quantified impacts of climate change - across transition, physical, and market pricing risks - on their investment portfolios using these publicly available scenarios. This provides an alternative to our proprietary in-house Ortec Finance Climate Scenarios and bespoke scenario sets, supporting peer benchmarking, disclosure, and reporting efforts.
We are delighted to continue supporting financial institutions in leveraging top-down climate scenarios to strengthen their risk management frameworks and in selecting the most suitable scenarios to meet their investment objectives.
Related NGFS climate scenario insights
- The role of damage functions in assessing physical climate risks
- Webinar recording: Incorporating NGFS short-term climate scenarios into investment risk management
- Webinar recording: Utilizing NGFS climate scenarios for climate risk analysis
Contact
Bronwyn Claire
Senior Climate Specialist