UK occupational pension scheme NEST, which manages £19bn (€22bn) on behalf of savers, is tendering for a set of “plausible” climate scenarios to help it gauge its exposure to climate risks.
In a tender put out late last week, the pension fund said it is looking for climate change scenario analysis which “describe a diverse set of plausible future states, generally based on a specific global temperature rise”.
These scenarios, NEST said, will be used to “assess potential climate-related risks and uncertainties and test the resiliency of various asset classes under different conditions”.
In its response to the UK’s Department of Work and Pensions’ (DWP) consultation last year on climate risk governance and reporting by schemes, NEST said that free scenario analysis tools such as the 2° Investing Initiative’s PACTA one are not sufficient given the objectives of the UK Government’s proposed regulations.
In an update earlier this year, NEST rei…