Summary
This document is a technical report detailing the GIC Climate Signposts (GCS), which serves as an investor tool designed to navigate uncertainties related to climate change. The GCS facilitates a comprehensive evaluation of the probabilities associated with key climate scenarios, including Net Zero, Delayed Disorderly Transition, Too Little Too Late, and Failed Transition. It highlights the current predominance of the 'Too Little Too Late' scenario and underscores the significant uncertainties surrounding climate risks, which include physical and transition risks. The report outlines the necessity for investors to adapt their portfolios to manage these risks effectively. It also discusses the methodologies employed in climate scenario analysis, emphasizing the importance of understanding various risk drivers and the need for a balanced appraisal of climate scenarios. The GCS aims to provide insights into the complexities of climate issues and the implications for investment strategies in the face of evolving climate policies and market conditions.
