Climate risk glossary
Climate Scenario Analysis
Climate scenario analysis involves exploring multiple potential futures related to climate change and carbon constraints. It allows organizations to assess how their portfolios might perform under different scenarios, such as those outlined by the IPCC, NGFS, or PRI. Each scenario represents a different forecast for the future, with variations in global carbon budgets, allocations, and other economic factors. Climate scenarios typically describe annual carbon budgets and carbon price points over a period leading up to and beyond 2050. Emmi's Carbon Diagnostics tool enables users to run transition risk analyses against their portfolio's financed emissions using a range of templated scenarios. See Climate Scenario Analysis for more information.