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Vivid Economics is a strategic economics consultancy spanning public policy and support for commercial decision making with a broad, international focus

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The Inevitable Policy Response (IPR) is a landmark project to prepare financial markets for a wave of policy action as governments worldwide are forced to address climate change. Government action to tackle climate change has yet to achieve a fundamental economic shift, but as the realities of climate impacts become increasingly visible, governments will be forced to act more decisively. Yet, financial markets are not adequately pricing in climate-related policy risk.



Today we’re launching new analysis that shows in detail how the inevitable policy response to climate change will cause re-pricing of many the world’s most valuable companies by 2025. This forecast is based on company level impacts and shows major winners and losers emerging between and within key sectors including energy, automobiles, utilities, minerals, and agriculture.

Our aim is to deliver a reality-check to investors who assume governments will take limited action on climate change, while also providing them with a tool to navigate the complex and evolving policy landscape. We hope this will encourage investors to engage in forward looking risk management – shifting from brown to green asset allocations while advocating and engaging for earlier and more ambitious climate action.

This forecast tool responds to fresh concerns that financial markets are overly reliant on business-as-usual outlooks – such as the International Energy Agency’s Stated Policy Scenario (STEPS) – that assume a limited policy response to climate change. Up to now, a major problem for investors has been a lack of a credible forward-looking alternative for business planning. We hope to fill that gap.


Join our webinar on The Inevitable Policy Response: Preparing investors for an abrupt transition on Wednesday, 11 December 2019 at 14.00 GMT.

A forceful policy response to climate change within the near term is not priced into today’s markets. Yet it is inevitable that governments will be forced to act more decisively than they have so far, leaving investor portfolios exposed to significant risk. The longer the delay, the more disorderly, disruptive and abrupt the policy will inevitably be. In anticipation, PRI, Vivid Economics and ETA have developed a pioneering project that helps investors prepare for the financial impact of an Inevitable Policy Response (IPR). Join to find out about the macro-economic impacts, which key sectors will be impacted across major asset classes, to learn about the Forecast Policy Scenario (FPS)l and how PRI will support investors.  Speakers include: Thomas Kansy (Principal, Vivid Economics) and Sagarika Chatterjee (Director of Climate Change, PRI)

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The team were responsive, flexible and able to turn around detailed materials in a short time period

Adam Molleson (ICED Facility)

I have found Vivid very professional and the quality of work really impressive

Will McGoldrick (WWF Australia)

The research was undertaken at a level of professionalism that made it credible to our entire audience

Stephen Boucher (European Climate Foundation)

The analysis tells a powerful story and could really be a useful tool in advocating land use change

Harry Bowell (National Trust)

Vivid had valuable input on current practices and market behaviour

Gleice Lima (Global Canopy Programme)

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Nick Oakes (Global Canopy Programme)

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Oliver Knight (ESMAP World Bank)

Vivid were extremely hands on and matched the demands of the situation

Kashmala Kakahkhel & Charlotte Finsbury (Climate and Development Knowledge Network)

Vivid were extremely responsive to our requests

Owen Pascoe (Australian Energy Market Commission)

Vivid have good availability and react well to feedback on work they have completed

Kristian GjerlØv-Juel (Danske Commodities A/S)

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We apply deep and rigorous analysis to provide practical solutions that generate lasting value for our clients and for the world

We bring deep expertise across nine sectors

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We apply leading methods leveraging eleven capabilities

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