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Investors Alerted to “Black Box” Climate Scenarios

To address limitations in scenario analysis, investors are likely to develop their own in-house models to fill sectoral and geographical data gaps.

Climate scenario analysis – deemed critical to understanding and mitigation of climate risks – is still in its very early stages, often lacking transparency and failing to account for key risks, investors have been warned. A rapid rise in climate scenario analyses is being driven by increased investor demand and…

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