Using Climate Pathways for Strategic Asset Allocation (SAA)

  • » Provides the scenario content needed to measure the financial impact of climate risk on asset classes and market risk-factors.
  • » Provides climate-adjusted Capital Market Assumptions (CMAs) across 30+ economies, including all the major asset classes and risk factors relevant for insurers.
  • » Provides a sector level view of impacts across the different climate scenarios
  • » Gives you confidence in your scenario selection to address needs of different business functions and the business overall.
  • » Helps you develop a deeper understanding of the financial impact of climate risk on your balance sheet.
  • » Helps align assumptions between assets and liabilities for consistency in impact assessments.
  • » Provides access to Moody’s Climate and calibration experts for guidance on the right scenario selection.
  • » Builds internal credibility by being able to rely on your outputs and justify recommendations to internal and external stakeholders. 

What we deliver

  • » Top-Down deterministic & stochastic scenario sets that can be used directly in quantitative SAA processes for each of the selected paths from your preferred framework, such as NGFS.
  • » Ability to apply the scenarios to your own baseline view to produce climate-adjusted Capital Market Assumptions (CMAs).
  • » Access to the Climate Pathways App to view and select different assumption sets.
  • » The ability to use scenarios as long-term projections, or alternatively as short-term impacts omarket re-pricing/capitalization events.
  • » The ability to support customized climate assumptions, business-specific baseline assumptions, and custom asset classes.
  • » Full Documentation.
  • » Workshops with Moody’s Analytics experts.