There have already been many developments in the climate risk management landscape in the first half of 2025, most notably the inaugural release of short-term climate scenarios by the Network of Central Banks and Supervisors for Greening the Financial System (NGFS).
In line with this ongoing interest, this issue features two webinar recordings on the topic. The first discusses the role of longer-term NGFS scenarios in climate risk management frameworks and how these scenarios can be practically applied in the investment process. The second recording specifically focuses on the new short-term scenarios, covering important topics including how physical, transition and market pricing risks have been assessed and quantified.
Physical risks – widely considered by investors as the dominant climate risk as net-zero goals fade from focus, are the subject of our lead article. We examine how and whether these risks are sufficiently captured in climate scenario modelling frameworks and help readers better understand damage functions and the differences between quadratic and logistic approaches in an investment context.
Following the response for further insights on our 2025 Ortec Finance Climate Scenario update, as well as the caution we have highlighted regarding the insufficient pricing of climate risks, we have also delivered webinars on each respective topic, available below. If you enjoy these webinars, don’t forget to register for our next session in September, which will discuss climate risk considerations for private assets - an increasingly important asset class for institutional investors.
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