Your expert for questions
Partner, Sustainability Services at PwC Germany
Tel.: +49 40 6378-2505
From the EU Action Plan to the Carbon Disclosure Project and the Principles for Responsible Investment (PRI), the financial industry is increasingly regulated. All regulations have one thing in common: they require financial institutions to systematically integrate scenario analyses into existing processes in order to test the resilience of the business model.
For investors, the question is not only how to comply with these regulatory requirements. They also face the task of translating the financial implications of different climate scenarios into their risk and opportunity management and understanding their material drivers.
As investors, Climate Excellence provides answers to these questions
Overview: Get an overview of the total climate-related financial impact on the investment portfolio and understand the financial materiality of the scenarios on the portfolio. Comparison with a selected benchmark can illustrate the relative positioning of the portfolio compared to a reference portfolio.
Heatmap: Deepen your understanding of the hotspots in your portfolio. This allows you to quickly prioritize for further, deeper analysis. Hotspots can be displayed by sector, region, and in combination. It is also possible to break down the analysis to individual companies driving the results.
Asset benchmark: Which companies in your overall portfolio participate in transition opportunities across all scenarios and potential pathways of adaptive capacity? Which are more exposed to transition risks? With Climate Excellence, you can see this at a glance. At the sector level, they can see how much individual company performance may deviate from the possible sector average.
Individual asset view: Which technologies, subsectors and regions are the most significant drivers of an individual company's climate-related financial performance? This can be broken down to activity driver level in Climate Excellence. Use these insights to target climate-specific issues into your engagement.
The next expansion stage links this quantification with a qualitative scenario narrative. This gives you all the information you need at a glance.