Pensions Advisory Firm Isio Chooses Moody’s Analytics for Climate Risk Modeling
NEWS | For Immediate Release
LONDON, May 25, 2021 – Moody’s Analytics today announced that UK pensions advisory firm Isio will use Moody’s Analytics climate risk modeling to assess the financial impact from climate risk exposures, across both physical and transitional risks.
The Pension Schemes Act 2021 from the UK Government requires large UK pension plans to begin reporting in line with Task Force on Climate-related Financial Disclosures (TCFD) recommendations. This includes reporting on the impact of different temperature scenarios and levels of greenhouse gas emissions on a portfolio. Pension plans, as well as insurers, can use the Moody’s Analytics solutions to perform asset and liability projections through climate-aligned scenarios.
“Understanding and managing climate risk is increasingly important for our clients,” said Pat Race, Partner at Isio. “We work with organizations to develop and implement bespoke environmental, social and governance (ESG) policies; as part of this we consider a broad range of ESG risks and assessing climate risk forms an integral part of our ESG approach. Moody’s Analytics has a strong track record in scenario modeling and their solutions and expertise will allow us to provide our clients with more valuable advice around managing their climate risk exposures.”
The climate risk modeling is underpinned by climate-aligned scenarios, which leverage the award-winning Moody’s Analytics scenario generation software and translate climate pathways into expanded financial risk variables to help assess climate-related risks and anticipate the future impact of climate change on asset and liability projections. The climate pathways can be specific to the Network for Greening the Financial System criteria, Moody’s Analytics’ economic climate assumptions, or the client’s own input.
“The Pension Schemes Act 2021 has crystalized the need for large pension plans to report on the ESG risks they are managing, particularly around climate. Our expertise in scenario analysis and climate science is perfectly positioned to help with this,” said Simon Robinson, Director at Moody’s Analytics. “We’re pleased to add Isio to the growing number of firms using our climate-aligned scenarios to model and assess the financial impact from climate risk.”
Learn more about Moody’s Climate Solutions.
About Moody’s Analytics
Moody’s Analytics provides financial intelligence and analytical tools to help business leaders make better, faster decisions. Our deep risk expertise, expansive information resources, and innovative application of technology help our clients confidently navigate an evolving marketplace. We are known for our industry-leading and award-winning solutions, made up of research, data, software, and professional services, assembled to deliver a seamless customer experience. We create confidence in thousands of organizations worldwide, with our commitment to excellence, open mindset approach, and focus on meeting customer needs. For more information about Moody’s Analytics, visit our website or connect with us on Twitter or LinkedIn.
Moody's Analytics, Inc. is a subsidiary of Moody's Corporation (NYSE: MCO). Moody’s Corporation reported revenue of $5.4 billion in 2020, employs approximately 11,500 people worldwide and maintains a presence in more than 40 countries.
Isio is a leading UK pensions advisory firm which combines actuarial expertise, third party administration, investment consulting and defined contribution specialism to deliver better outcomes for pension scheme sponsors, trustees and members. Isio, formerly KPMG’s UK pensions practice, was launched in March 2020 to apply our years of experience with a new approach and way of thinking. Isio aims to deliver clearer, simpler pensions and investment advice in a more personal way, backed by technical expertise and underpinned by proprietary technology.