Key points
Authors define scenario analysis as a way to “evaluate a range of hypothetical outcomes by considering a variety of alternative plausible future states under a given set of assumptions and constraints”.
The first in a series of five reports, this report focuses on the methodological and conceptual underpinnings of scenario analysis. It suggests ideas (and provide tools) as to how scenario analysis can be performed and integrated into company valuations and responsible investment strategies to measure and overcome the potential mispricing of climate-related risks.