The economic context and climate risks
Systemic risk – the possibility of an event triggering severe economic instability – has been a widespread concern in the financial sector, particularly since the 2008 financial crisis. More recently, climate risks have been added to the list of factors that could disrupt the market.
Through their impact on economic activity, climate risks necessarily affect financial markets and, ultimately, return on assets. It’s therefore important for investment firms to integrate these risks into their decision-making process.
One vision, two measures
As an asset manager, NBI has put a plan in place to address climate risks. This plan is based on two strategies, detailed in this white paper.
- To this day, few firms have integrated the notion of climate risk into portfolio construction. Find out how NBI's CIO Office achieved this and what conclusions can be drawn for return forecast.
- NBI's open architecture model requires ongoing assessment and monitoring of portfolio managers, including their level of preparedness for climate risk. Learn how NBI evaluates its partners on this aspect.