Following the positive response to last year’s inaugural Climate risks facing the pension industry worldwide report, we are pleased to present an update with our latest 2025 climate scenario release to the global institutional investment community.
This 2025 update translates the financial consequences of climate change for the global pension industry, using Ortec Finance’s latest climate scenarios to generate decision‑useful insights for trustees, CIOs, and investment teams.
Key takeaways
Climate change is reshaping the economic landscape.
The pension industry faces significant climate-driven macroeconomic shifts.
Transition delivers long-term benefits for pension funds.
Transition scenarios can involve steeper short-term drawdowns, but they position pension portfolios for stronger performance over time.
Short-term costs, long-term economic benefits.
The near-term impact of a low-carbon transition is far outweighed by its ability to curb climateflation and prevent prolonged economic stagnation.
Delaying transition compounds long-term systemic risk.
Postponing the transition creates dual headwinds:
1. Shrinking nominal returns and stagnating economic growth
2. Higher inflation and rising cost of living.
Geography matters.
Regional differences in asset allocation, sector exposure, and physical‑risk profiles drive divergent outcomes for pension funds.
Download the report to the findings in detail and consider their implications for long-term portfolio resilience and the financial stability and security of pension beneficiaries.
Contact
Maurits van Joolingen
Managing Director, Climate Scenarios & Sustainability