This paper – Red sky in the morning | a deep dive into climate scenarios and what to do – has been written following the research and discussion conducted by the Thinking Ahead Institute’s Investing for tomorrow – Macro working group.
The key objective of this working group was to explore the feasibility of climate scenarios, expose their limitations and provide support for coping strategies. To do this, the group conducted net zero emission scenarios analysis, improved their understanding of these scenarios, considered short- and long-term climate goals and recommended hypothesis testing. The group also provided a set of tools, including a decision tree and workshop framework.
This paper highlights the need for prudent risk management and urgent emissions reduction, and encourages deep engagement with climate scenarios for sustainable long-term investment strategies.
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