20-03-2024 · Insight

Navigating the climate transition with climate scenario stress testing

Investors face a difficult challenge in building portfolios that can successfully manage climate change risks, opportunities and impacts. It requires forward-looking data and an ability to interpret it, so that clients can mitigate the risks – and monetize the returns – that the low-carbon transition will bring.

Download the whitepaper (part two) here Also interested in part one? Download it here


    Authors

  • Lucian Peppelenbos - Climate & Biodiversity Strategist

    Lucian Peppelenbos

    Climate & Biodiversity Strategist

  • Emily Homer - Climate Specialist

    Emily Homer

    Climate Specialist

  • Rafael Migani Monteiro - Financial Risk Manager

    Rafael Migani Monteiro

    Financial Risk Manager

To tackle these challenges, Robeco applies qualitative assessment on top of quantitative techniques to minimize the gap between model results and real-world outcomes. In the second part of our research entitled ‘Navigating the climate transition’, we outline our approach to these challenges through the stress testing of various climate scenarios.

This builds on the first part, entitled ‘Navigating the climate transition with forward-looking analytics’, in which we explained how different metrics can be used to make a comprehensive assessment of climate transition risks, opportunities and impacts.

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Important information

This information is for informational purposes only and should not be construed as an offer to sell or an invitation to buy any securities or products, nor as investment advice or recommendation. The contents of this document have not been reviewed by the Monetary Authority of Singapore (“MAS”). Robeco Singapore Private Limited holds a capital markets services license for fund management issued by the MAS and is subject to certain clientele restrictions under such license. An investment will involve a high degree of risk, and you should consider carefully whether an investment is suitable for you.