OPTrust reveals results of climate change stress test

OPSEU Pension Trust took a step to deepen the discussion institutional investors are having about climate change by releasing its own climate change scorecard this week, a Mercer report commissioned to assess and quantify the sensitivity of its investment portfolio to climate change risk.

The report shows the estimated return implications under four climate scenarios and risk factors over a 35-year period, with the most severe scenario causing a 5.44 per cent drop in returns.

The impact of climate change varies considerably across asset classes – timber, real estate, agriculture and emerging market equities could benefit as temperatures rise by two per cent – but they could begin to suffer under the most severe scenarios.

Read the full article on Benefits Canada‘s companion site, Canadian Investment Review.