Following the interest in our inaugural Climate risk assessment – Top 30 Australian superannuation funds report, we are pleased to present an update with our latest 2025 climate scenario release to the Australian superannuation network.
This 2025 update reflects the evolving uncertainty experienced by Australian institutional investors toward actively investing in the low-carbon transition, amid complex domestic and international geopolitical dynamics.
It focuses on harnessing Ortec Finance’s proprietary climate scenarios to generate tangible insights, tailored to the Australian context, that help superannuation funds integrate climate risks, as well as opportunities, into their investment decision-making processes.
Key takeaways
Climate change is reshaping the economic landscape.
The superannuation industry faces significant climate-driven macroeconomic shifts.
Transition delivers long-term benefits for superannuation portfolios.
Transition scenarios can involve steeper short-term drawdowns, but they position superannuation portfolios for stronger performance over time.
Short-term costs, long-term economic benefits in Australia.
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 Australia’s long-term systemic risk.
Postponing the transition, even for a short period, creates dual headwinds:
1. Shrinking nominal returns and stagnating economic growth
2. Higher inflation and rising cost of living.
Geography matters.
Regional differences significantly influence equity markets. Strategic asset allocation, sector exposures, and a pragmatic physical risk assessment are vital for long-term portfolio resilience.
Download the report to explore the findings in detail and consider their implications for long-term portfolio resilience and the financial security of Australian retirees.
Climate Scenarios & Sustainability
Contact
Maurits van Joolingen
Managing Director, Climate Scenarios & Sustainability
Doruk Önal
Climate Risk Consultant