Climate scenario analysis – a unique investment framework

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© Aberdeen Standard

| Climate change is one of the defining issues of our age. Its physical manifestations are negatively affecting ecosystems, human health and economic infrastructure. The transition to a zero-carbon economy presents significant risk, but also opportunities for investors.

| To properly account for these we have developed a unique approach to climate scenario analysis. It allows us to assess the financial impact on assets of different climate pathways, ranging from 1.5°C to 4°C. Our insights are then embedded in our business strategy, investment processes and the development of climate-driven solutions for our clients. In doing so, we believe we can build more resilient portfolios and generate better long-term returns for clients.

| Importantly, climate scenario analysis is a journey rather than a one-off project. We intend to update our analysis annually. This means we can take into account changes in policy, technology, and the structure of markets. We can also include how companies themselves are adapting to climate change. This means our insights will continue to evolve, allowing us to identify new risks and opportunities as they emerge.

You can explore our approach more fully in our White Paper

more from Aberdeen Standard Investments

| Important Information

Investment involves risk. The value of investments, and the income from them, can go down as well as up and an investor may get back less than the amount invested. Past performance is not a guide to future results.

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