This article by GIC sets out how climate scenarios can help investors build portfolio resilience
- Investors must assess the impact of climate change on investments and determine the right strategy to increase portfolio resilience.
- GIC and its partners have developed a set of climate scenarios to map out and stress test portfolios against potential future pathways, as well as a set of climate signposts to assess the likelihood of each scenario.
- The analysis based on the most recent scenario sets and signposts is clear: expect greater volatility, continued uncertainty, heightened transition and physical risks and disruptive change on the horizon.