New York, Rotterdam (October 26, 2022) - Qontigo, a leading provider of innovative risk, analytics, and index solutions, has partnered with Ortec Finance, a leading global provider of technology and solutions for risk and return management, to provide climate stress testing capabilities within Qontigo’s Axioma RiskTM for clients to assess climate risks in their portfolio.
With increasing regulatory pressures worldwide, asset managers and asset owners require more robust insights into their exposures to climate risk. Through combining Ortec Finance’s state of the art climate risk-aware economic and financial scenarios with Qontigo’s unique portfolio management and risk analysis solutions, clients can seamlessly translate climate transition scenarios to their portfolios to assess exposure and climate resilience.
Ortec Finance’s Climate MAPS solution translates climate pathways and policy assumptions into their impact on financial variables, such as equity returns at country or sector level, or credit spreads at country level. These financial variables are mapped to the factors in Qontigo’s multi-asset class risk solution to enable top-down climate-informed stress tests. The climate pathways consider both transition and physical risks, and include a range of narratives including Orderly and Disorderly Net-Zero, Failed Transition as well as the NGFS climate scenarios.
“As the race to net zero continues across the globe, buy-side firms not only need a better understanding of how their portfolios are impacted by climate risk. This partnership enables forward-looking climate scenario analysis across asset classes, regions, and sectors. Axioma Risk clients can calculate their portfolio analytics and stress test scenarios under different market conditions to help make better informed, climate aware decisions,” said Lisa Eichler, Managing Director Climate & ESG Solutions at Ortec Finance.
“Our clients want a consistent view of risk and return across their organization. Utilizing Axioma Risk’s customizable scenario engine, we mapped Ortec Finance’s climate-informed projections to risk factors in Axioma Risk, allowing clients to gain insight into the drivers of climate risk that aligns with their overall portfolio risk assessments. This significantly improves our clients’ ability to measure the impact of climate change on their portfolios while allowing for intuitive decomposition with standard risk factors,” said Chris Sturhahn, Chief Product Officer for Analytics.
About Qontigo --- Optimizing Impact™
Qontigo is a leading global provider of innovative index, analytics and risk solutions that optimize investment impact. As the shift toward sustainable investing accelerates, Qontigo enables its clients—financial-products issuers, asset owners and asset managers—to deliver sophisticated and targeted solutions at scale to meet the increasingly demanding and unique sustainability goals of investors worldwide.
Qontigo's solutions are enhanced by both our collaborative, customer-centric culture, which allows us to create tailored solutions for our clients, and our open architecture and modern technology that efficiently integrate with our clients' processes.
Part of the Deutsche Börse Group, Qontigo was created in 2019 through the combination of Axioma, DAX and STOXX. Headquartered in Eschborn, Germany, Qontigo's global presence includes offices in New York, London, Zug and Hong Kong.
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