The financial services industry has a crucial role to play in mitigating climate change. Over $300 trillion of infrastructure investment is required 2050, representing a huge responsibility, as well as commercial opportunity. Simultaneously climate change brings tremendous risk to financial services firms – with potential tipping points in the value of assets held by financial institutions across a wide range of sectors.
Most financial institutions can’t understand and evidence the climate impact of their investments or the climate-related risk of their assets.
20 years of experience in advising governments, energy and financial institutions on energy transition and climate change, allowed Baringa to build a unique Climate Change Scenario Model which provides the insight that all financial services firms critically need.
In 2021 BlackRock acquired the Baringa Climate Change Scenario Model to enhance Aladdin Climate technology. Baringa and BlackRock have entered a long-term partnership to continue co-developing these models so they remain the market leading solution.
What the Climate Change Scenario model tells you;
What is my climate change risk? Based on my current balance sheet, how will the value of my assets and client’s asset change?
What is my climate impact? How are our activities and investments impacting the climate, and how does this compare with our peers?
What are my Climate-related opportunities? How can we reallocate what we invest in and fund to improve our impact on the climate at the same time as making commercial returns?
View the e-publication on our Climate Change Scenario Model below: