Lisa Eichler

New Year, New US Presidency. Never has objective information on where the world is heading in combination with comprehensive scenario analysis been more important.

“We know that climate risk is investment risk. But we also believe the climate transition presents a historic investment opportunity.” Larry Fink, BlackRock, 2021
The global investment community is in agreement on the direction of climate action: Net Zero by 2050, which implies ensuring that your portfolio emits 7 – 10% less emissions each year from now until 2050. This is a big job, but a doable one. Here are five thoughts to help you on your way.

Central bank network NGFS has recognized Ortec Finance’s Scenario Analysis for Systemic Climate Risk as one of tools that can be used to analyze the potential impact from transition and physical risks associated with climate and other environmental factors on financial institutions.

Two papers on climate scenario analysis for financial institutions, written in collaboration with the Institute and Faculty of Actuaries. These papers explore how scenario analysis can be used as a tool for forward-looking assessment of climate-related risks and opportunities for financial institutions.

In the current environment, the realization of what it means to be exposed to systemic risk has never been so clear. Coronavirus is disrupting the global economy and financial markets effecting all sectors and regions.

This paper, “Scenario Analysis for Systemic Climate Risk” by Ortec Finance and CFA (Climate Finance Advisors), highlights the importance of taking systemic, macroeconomic climate-related risks and opportunities into account when making strategic investment decisions.