Aon: Climate Change Challenges – Climate change scenarios and their impact on funding risk and asset allocation

Pension funds, as long-term investors, could find themselves exposed under many of the potential future scenarios around climate change. The long-term effects of un-tempered climate change are likely to be highly damaging, but the economic transformation required to deal with the challenges could also cause pain in the near term for those that are unprepared. This paper explores the role for scenario analysis.