Nordic Sustainable Investment Platform has published an interview of Willemijn Verdegaal and Lisa Eichler (co-heads Climate & ESG Solutions) in its latest publication. In this interview, Willemijn and Lisa discussed the significance of integrating Systemic Climate Risk Scenario Solution in investment strategies.
While explaining the apparent effects of climate change, Willemijn said “We wanted to be able to evaluate how, fundamentally, the economy would be impacted over time by climate risks. The financial industry is missing out on the big picture, we thought. A lot of effort is spent on the microeconomic level of finance, not on the macroeconomic level.” She also mentioned that “The idea was not to develop a measurement tool at the company level, but to measure systemic effects on the economy and financial sector as a whole. Climate change is a mega trend, and therefore, it will impact our fundamental ability to generate returns.”
The two founders of the Ortec Finance Climate & ESG Solutions explained how they wanted to develop a top-down research-based approach that investors would be able to use in the context of investment risk management.
They also stressed the fact that “Climate change represents a risk you cannot diversify out of. Even if you are very green, you might not do well if the market is impacted. This is a concept that the Swedish and Finnish markets were incredibly receptive about. Organisations understand the necessity of our product. They know that they have to get their head around it, they understand the use of our product, where it fits in the value chain and the added value.”
The NordSIP platform serves as the information link and connection hub between institutional investors and managers offering sustainable investment products, and as a reference point for the high interest across the asset management spectrum and beyond, viewed from the Nordics.
Read the complete interview here.
To learn more about the Systemic Climate Risk Scenario Solution, click here.