Investment Strategies

Climate
Stress Testing

 

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Urgentem’s Climate Solutions team has developed an innovative methodology and model, which has contributed to the European Central Bank’s recent pioneering climate stress testing framework.

The stress testing exercise is a first of its kind exercise which represents a significant step forward in comprehensively understanding how climate risks (physical and transition) will fundamentally affect economic and financial stability, particularly from a quantitative and forward-looking perspective.

 

Urgentem’s climate solutions team can support clients to project Scope 1, 2 & 3 emissions data forward up to 2100, using disclosed and modelled corporate emissions data. Our bespoke forward-looking projections can consider a range of global emissions pathways, either based on NGFS, IEA or IPCC scenarios.

 

Lastly, the model also accounts for negative emissions as an outcome of (i) adopting carbon dioxide removal (CDR) technologies under different scenarios and (ii) from land use change (LUC).

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Client Testimony

 

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"One great advantage of Urgentem as compared with other data providers is that it covers granular Scope 3 emissions, which are of utmost importance for deriving the carbon footprint of a firm, encompassing all the CO2e emitted throughout the value chain. "

ECB economy-wide climate stress test - Methodology and results; No 281; September 2021