The Impacts of a Climate Transition on Investment portfolios

One of the world’s largest banks and institutional investors commissioned Vivid Economics to model the impacts of climate transition risk on financial assets. This pioneering piece of work quantified the value impairment of different climate scenarios on individual assets, covering both equity and fixed income. The methodology involved combining information from a wide range of financial and ESG data providers, as part of a modelling exercise that made use of Integrated Assessment Models (IAMs) and microeconomic modelling of emissions abatement, cost pass through and fossil fuel demand destruction. Outputs included internal workshops with risk management teams, fund managers and CSR teams, internal and external presentations, and public-facing reports.

Client

HSBC GAM

Sectors:

Finance
Industry Manufacturing & Mining

Capabilities:

Market Design & Economic Regulation
Net Zero Transitions
Trade, Investment & Competitiveness

Regions:

UK