Broadstone has partnered with Ortec Finance to add climate scenarios to its suite of ESG Advisory capabilities.
The scenarios allow Broadstone to measure, monitor and manage financial materiality so asset owners, including defined benefit and defined contribution pension schemes, can better understand the financial impact of climate change on their investment portfolios and balance sheets.
Broadstone said that with global sustainability reporting frameworks moving towards harmonisation and placing double materiality at the forefront, asset owners and regulators are increasingly recognising the additional risks posed by climate change and are focussed on understanding the physical and transition risks that portfolios and corporates face.
Utilising the new service, investors will be able to quantify key macroeconomic changes and assess the impacts on asset class returns under various climate change scenarios.
Deon Dreyer, investment director at Broadstone, said: “Climate change has the potential to cause significant economic disruption and asset owners will need to assess the financial impact from potential economic scenarios, and their impact on the environment. We are confident this solution will prove invaluable in helping asset owners navigate this.”
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