Ben McNeil in IPE: pension funds are stress-testing every climate future except the most likely one

Institutional Real Estate & Pensions Europe has published a guest viewpoint from our co-founder and climate scientist Dr Ben McNeil, setting out the case behind our latest research.

Clients raise this argument with us directly. Regulatory frameworks prescribe a 1.5°C pathway at one end, and a high-warming world at the other, and both are appropriate for the stress tests they were designed for. Neither is a forecast, and neither was built to inform an allocation decision. What's missing is a defensible answer to what the world is actually tracking.

Ben's piece explains why that gap matters for pension funds specifically, and what changes when a portfolio is screened against the expected world instead of the tails.

Read the full article in IPE.

The research behind it, including the probability distribution across the standard scenario library and transition risk scores for ten named companies under both scenarios, is available here.