Climate scenario analysis - pension fund trustees – Invesco

How can pension fund trustees get started on climate scenario analysis?

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... With more pension schemes now required to publish a Task Force on Climate-Related Financial Disclosures report, trustees face the task of assessing the potential impact of climate change on their scheme’s strategy, assets and liabilities. Approaching climate scenario analysis may seem a daunting prospect. But it’s important to remember scenario analysis itself is a long-established planning tool. At its most basic, it’s about answering the question: “What if...?” What would be the impact if the global average temperature increased by 1.5 or 2°C? And the results can help trustees mitigate potential portfolio risks and take advantage of future opportunities in the transition to a low-carbon economy.

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