Climate change is increasingly recognised as a key systemic risk that investors need to address as part of their fiduciary duty and broader responsibilities as responsible investors. In the light of this development, Ortec Finance has decided to launch its new team ‘Strategic Climate Solutions’. 

Where to date most climate-related risk data sets and stress testing tools tend to be stand-alone products, we see a clear opportunity to integrate this information into Ortec Finance’s existing unique technology and solutions. This allows us to bring 'climate' into the mainstream of our bespoke strategic investment advisory services.  The new team will be led by Willemijn Verdegaal and Lisa Eichler, who each have more than 10 years of experience in mainstreaming climate-related risks and opportunities into investment decision making, corporate strategy, public policy making and financial regulation, including for leading Dutch pension funds, the Dutch government, the European Commission and the United Nations Framework Convention on Climate Change.  

As Mark Carney, Governor of the Bank of England and Chairman of the Financial Stability Board, put it so clearly, “Once climate change becomes a defining issue for financial stability, it may already be too late”. Climate-related risks may manifest as part of a potentially abrupt transition to a low-carbon economy or through physical impact by increased exposure and lack of resilience to observed climate changes, including for example an increase in the frequency and severity of extreme weather events. Likely, it will be some combination of the two. 

Climate-related risks and opportunities require sound management. Ortec Finance has several concrete applications of climate integration under development in the space of  ALM, risk monitoring, and performance attribution tools. These applications will empower our clients to integrate the climate factor throughout their investment process. Clients will be able  to respond to existing and potentially new climate-related regulation, including reporting along the lines of the Task Force on Climate-related Financial Disclosures. We are fully aware that this exciting venture will entail a lot of pioneering and deep learning, and we look forward to working closely with our clients and other stakeholders to develop this part of our business. 

The strength of Ortec Finance lies in the combination of quantitative knowledge, IT and market expertise. With our unique technology and solutions we enable our clients worldwide (+/- $ 2.5 Trillion in assets under advisement) to manage the complexity of investment decision making.