Strategic investment decision-making in a changing world
Ortec Finance's Climate & ESG Solutions provide insights and technological applications to financial institutions, enabling them to integrate sustainability into complex investment decision-making.
The state-of-the-art solutions combine independent research-backed ESG and climate change insights with standard investment process modeling and analysis.
Insights into quantified climate & ESG risks and opportunities, efficient integrated software solutions, in-line with regulatory requirements.
Systemic Climate Risk Scenario Solution
Ortec Finance has integrated quantified systemic climate risks and opportunities associated with different global warming pathways into traditional multi-horizon, real-world scenarios sets that drive strategic investment decision-making. This forward-looking scenario analysis can be used to assess climate risks for all asset classes within your portfolio, optimizing asset allocation and fulfilling regulatory requirements, such as pillar 2 'Strategy' of the TCFD disclosure recommendations.
Enhance your investment strategy with this systemic climate risk scenario solution, embedded in traditional quantitative modelling software for risk and return management.
Our climate risk scenario solution can be built up from a combination of different ‘building blocks’:
Ortec Finance’s research shows that it is key for investors to take the systemic nature of climate change-related risks and opportunities into account. Climate change will not only affect companies on the individual level but will also fundamentally impact how the economy performs as a whole. Currently, most investors seem to focus on managing climate risks by engaging with, and potentially divesting from, individual companies and other holdings. ‘Stock-picking’ is likely to be insufficient to manage the broader, knock-on effects on the economy as GDP, interest rate and inflation are impacted by climate change.
If we picture investors as mountain climbers then they are currently focusing on choosing the right handholds (companies) to climb up the mountain face, but they are forgetting to check if the actual route (the assumptions around macro-economic development) they have planned out is the correct one. No climber, no matter how strong the individual handholds, is going to reach the top if they are climbing on the wrong route all together!
ESG & Low-Carbon Benchmark Solution
The Climate Radar monitors specified climate risk and opportunity indicators and offers guidance as to which global warming pathway the real world is heading towards. Our cognitive technology picks up signals from the fields of policy, technology, sentiment and science, to indicate if the world is on track to meeting the Paris Agreement goals, if there might be disruptive policy or technology changes coming up, and whether there are real-world indications for higher warming trends.
Climate & ESG Risk - Legal and Regulatory Scan
Is your ESG & Climate policy ‘in sync’ with current and upcoming regulation and broader social sentiment? Our legal and regulatory scan reviews your current ESG & Climate policy in light of existing and upcoming global, regional (e.g. EU) and national regulation. We also provide an overview of other trends (e.g. consumer sentiment, NGO pressure) that may affect legal and regulatory compliance in the future.
Climate & ESG Orientation Workshop
Are you in the early stages of thinking about how to integrate ESG and climate change topics across your organization? Do you feel overwhelmed by the speed of new developments in this field? Do you currently apply a ‘piecemeal’ approach to tackling these topics and would like to gain a sound overall understanding? Then our climate & ESG orientation workshop is a great starting point to gain oversight and insight, explore routes for action, and orientate your organization as regards its potential climate and ESG path.
Sustainable Personal Financial Planning
We provide tooling that integrates sustainability in goal-based financial planning. We enable optimization along both personal sustainability preferences and financial goals.
Additionally, we offer the option of performing the goal-based financial planning based on our systemic climate risk-aware economic & financial outlook. This enables you to take systemic climate-related financial risks and opportunities into account.
Integrated ESG & Financial Performance Dashboard
Our software has the capability to integrate any environmental, social and governance metrics into performance measurement and attribution. This enables you to measure, monitor and analyze your ESG integration strategies on financial and sustainability performance in one solution.