Climate and Nature
It's time we treated nature as the systemic risk it is
Governments at COP17 must deliver the policy certainty, transparency and accountability that ... Les saken nå
Climate change and nature loss are not only environmental challenges. They are investment issues that can affect economic growth, company performance and long-term returns. The report sets out how we identify and manage these risks and opportunities through investment analysis, portfolio management, active ownership and investment in solutions.
Our climate scenario analysis helps us understand how different transition pathways could affect the companies and markets in which we invest. Using scenarios developed by the Network for Greening the Financial System (NGFS), our in-house model assesses how different policy and technology pathways could affect companies’ future cash flows and, ultimately, portfolio value.
This helps us assess the financial implications of both the pace and timing of the transition, and the resilience of our investment strategies under different scenarios.
This year’s report also marks an important step forward in our analysis of nature. Building on the TNFD framework and LEAP approach, we have expanded our access to nature-related data and incorporated asset-level location data through our collaboration with GIST Impact. This gives us a clearer view of where companies activities interact with sensitive ecosystems, and how our portfolios depend on and impact nature.
Our ambition is to increasingly bring these perspectives together. Going forward, we aim to further develop our scenario analysis by incorporating transition opportunities as well as the financial implications of physical and nature-related risks. This reflects a simple principle: a resilient economy depends on both a stable climate and healthy natural systems, and understanding both is increasingly important to protecting and creating long-term value for our clients.
“A resilient economy depends on both a stable climate and healthy natural systems. Our responsibility is to understand how these risks may affect the companies and markets we invest in, while identifying opportunities from the transition to a more sustainable economy.” - Jan Erik Saugestad, CEO, Storebrand Asset Management
The report reflects our commitment to transparency and continuous improvement as climate- and nature-related data, methodologies and reporting standards continue to evolve.
