Scenario analysis is one of the most useful tools for incorporating climate change-related risks and opportunities into the investment process. It enables a company’s management, analysts and investors to envision a number of different possible outcomes and test the sensitivity of returns to a number of prominent risk factors.
For many, using scenario analysis and net zero strategy is not well understood. However, over the past few years, we have heard a lot about using scenario analysis in investment decision-making, particularly in light of the climate risk that many investors face. Such steps have been highlighted in the Task Force on Climate-Related Financial Disclosure (TCFD) and more recently by the Canadian Expert Panel on Sustainable Finance. A number of companies have committed to net-zero strategies and have developed climate scenarios assuming different levels of rise in average global temperature by 2050.
The objective of this series is to better understand climate scenario analysis and net zero strategies.
Introduction to Scenario Analysis
Why is it important for a capital market participant including asset owner, investment manager, company; both from risk and opportunity perspective
What are possible market scenarios under certain temperature conditions?
Who should do it within an organization (which part of organization usually leads this – strategy, risk professionals)?
What sectors have the most risk and opportunities and impacts to the scenario outcomes?
Challenges, misconceptions, how do investors approach scenario analysis. Explanation on what is Net-Zero Strategy.
Presentation of the Southern Company’s scenario analysis and net-zero strategy
Reasons to attend
Get to know the Climate Scenario Analysis from experts.
Learn how to approach scenario analysis.
Be part of the Scenario Analysis and Net-Zero Strategies: Basics — Introduction to Scenario Analysis!
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