Climate scenario analysis

At abrdn we've developed a state-of-the-art climate scenario tool kit to allow us to estimate the effect of different climate scenarios on investment returns

Climate scenario analysis is an essential activity for climate-driven asset managers.
It is vital that investors understand how physical climate change and the energy transition affect the investment returns of the companies and markets they invest in. We believe that doing so will enable us to build more resilient portfolios and generate better long-term returns for clients. It is also increasingly demanded by asset owners and regulators. Three features jointly differentiate abrdn's climate scenario framework from that of most other asset managers and allow us to fully integrate the results into our business strategy – bespoke scenario design, macro and micro integration, and probabilistic assessments.

A rigorous framework for managing climate financial risks and opportunities
Climate Scenario Analysis has been the focus of the second in our series of Climate Action Events. In this session, Jeremy Lawson, Chief Economist and head of the abrdn Research Institute, leads a discussion on our cutting-edge climate scenario analysis framework. The panel highlights how the framework can be applied to better identify climate-related investment risks and opportunities. We believe it is possible to build low-carbon portfolios that closely match benchmarks. Our research shows that portfolios with a climate tilt can deliver similar or better performance in most regions and under most scenarios.
Watch the Climate Action Series, Session 2 here

Read our research

Climate scenario analysis update 2022 (May 2023)

People by solar panels

The transition to net-zero: Identifying credible transition leaders in APAC (May 2023) 

Climate Scenarios_APAC_Image

The energy transition in APAC: Security selection in the fight for the world’s climate future (May 2022) 

Climate scenarios, climate risk and developed-market sovereign bonds: an evolving science (Feb 2022) 

Wind turbine

abrdn’s 2021 climate scenarios: the evolution of investment risk and opportunity since the Covid crisis (Nov 2021) 

Wind turbines in the snow

Climate scenario analysis: a rigorous framework for managing climate financial risks and opportunities (Feb 2021) 

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