"CMIA helped to explain the potential for project-based mechanisms across a variety of constituencies and is a key voice driving the conversation on results-based finance and sector approaches for scaling-up emission reduction investments. We urgently need input from organisations like CMIA to operationalise Art 6 of the Paris Agreement."

Mr. Franz-Josef Schafhausen, former Director General Climate Change, European and International Affairs, Federal German Ministry of the Environment, Nature Conservation, Building and Nuclear Safety

Investing In A Time Of Climate Change — The Sequel

29th April 2019 by CMIA

Download the full report now.

In 2011, Mercer published its first global research report on climate change and its implications for strategic asset allocation, in partnership with a number of our institutional investment clients. In June 2015, we released a major update, Investing in a Time of Climate Change (“the 2015 Report”), another client collaboration. We are now publishing Investing in a Time of Climate Change — The Sequel (“the Sequel”).

Investing in a Time of Climate Change – The Sequel (the Sequel) documents Mercer’s latest climate scenario model for assessing the effects of both climate-related physical damages (physical risks) and the transition to a low-carbon economy (transition risks) on investment return expectations. The Sequel models three climate change scenarios, a 2°C, 3°C and 4°C average warming increase on preindustrial levels, over three timeframes – 2030, 2050 and 2100.

Since 2015, there have been many environmental, scientific, political and technological developments that continue to evolve our understanding of the climate-change-related investment context. In response to these developments and client demand, Mercer has updated its climate scenario model and is proud to publish the Sequel. The Sequel focuses on what is new and the “why, how and what” for investors, providing practical advice, including peer case studies.

Download the executive summary here

The findings strengthen the argument for investor action on climate change and suggest greater attention is required on how investors will actively support the transition to a 2°C scenario – as “Future Makers”. Fiduciaries – motivated by the economic and social interest of their beneficiaries and clients – have the opportunity, and arguably the obligation, to use their portfolios and their influence to help guide us towards this more-economically-secure outcome. We look forward to the opportunity to support our clients in incorporating climate change throughout the investment process and build climate resilient portfolios.

Mercer’s Climate Change work is a business wide collaboration, led by the Responsible Investing team. Mercer’s Responsible Investing Pathway maps out the full scope of the RI services Mercer offers, structured around integrating RI into the core stages of investment; Beliefs, Policy and Process, and Portfolio Implementation.

Source: http://bit.ly/Mer_Seq