Systemic climate risk management - for institutional investors

U.S. public sector pension plans are planning ahead for the potential impact of further economic and market shocks, a new report from Ortec Finance shows.

It hasn’t been since 2000 and 2001 that U.S. stock markets lost money in two consecutive years, but it’s something that could potentially happen again this year. Ortec’s modelling is pointing to negative equity returns over the next 12 months as the most likely market scenario. Pension funds with tactical or dynamic allocations at their disposal may want to temper their risk and consider fixed income instead.

Ortec Finance’s releases its 2023 ClimateMAPS standard climate scenario set that includes a new additional fourth scenario.

U.S. public sector pension plan managers believe the plans they support will spend more on scenario modeling and stress testing in the next two years.

US public sector pension plan managers are confident their plans are well hedged against inflation but still worry about possible risk scenarios, new research shows.

Ortec Finance discusses with Responsible Investor on why high-quality climate data is essential for investors to map progress toward emission reduction goals and enable a successful transition to net-zero.

Read about how Ortec Finance in partnership with Cambridge Econometrics, has supported global institutional investor GIC in updating its climate scenario analysis.

Analysis reveals that in 2022, 14% of U.S. public pension plans had funded ratios of 60% or less. Only 12% had funded ratios of 100% or more.

If you missed the Quarterly Scenario Webinar on April 20, you can access the presentation, the recording, and the Q1 Economic Outlook here.