Conning Integrates ESG and Climate Change Indices into Its GEMS® Economic Scenario Generator
July 13, 2021
ESG and Climate Risk Analysis Now a Standard Feature of Risk Management Platform
HARTFORD, CT – July 13, 2021 –Conning, a leading provider of risk and capital management software and professional services to the financial industry, today announced the addition of a range of environmental, social, governance (ESG) and climate-change indices into its award-winning* GEMS® Economic Scenario Generator software. The new models allow risk professionals to easily incorporate projection data based on climate- and ESG-weighted indices into their stochastic modeling of equity and corporate bond returns. In this way, financial risk professionals can explore the possible impact of climate change and ESG-related factors on asset allocation strategies.
“As investors continue to allocate capital based on ESG criteria, it will become more important to differentiate these assets from non-ESG investments and market-cap-weighted indices from a risk and return perspective,” said Matt Lightwood, GEMS Global Product Manager. “Doing so allows for more complete modeling of the risk profiles of the asset allocation, including any diversification benefits from bringing ESG factors into the strategic asset allocation process.”
While climate-change and ESG-related risk are now commonly incorporated into loss projections, Conning provides an easy-to-use integration of such data into stochastic asset modeling. The indices can be seamlessly integrated with Conning’s risk management software platform and are included as part of its quarterly parameterization. Analysis can be performed at short, medium or long time horizons and across a variety of severity scenarios.
“Our users are increasingly inquiring about how to assess climate risk in their business models,” said Lorraine Hritcko, Head of Conning’s Risk Solutions department. “Alongside our climate risk software-as-a-service solution released earlier this year, these indices bring us another step forward in making model allocations to these asset classes practical for insurance companies, pension funds and asset managers. These new models expand our central strategy of making ESG and climate-risk modeling implementable and cost effective in-house for both mid- and large-sized institutions.”
* * *
Conning (www.conning.com) is a leading investment management firm with a long history of serving the insurance industry. Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Conning’s risk management software platform provides deeper insights for decision making, regulatory and rating agency compliance, and capital allocation. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
Conning’s risk management software platform includes GEMS® Economic Scenario Generator, FIRM® Portfolio Analyzer, ADVISE® Enterprise Risk Modeler, and Conning Allocation Optimizer™, and provides deeper insights for decision making, regulatory and rating agency compliance, and capital allocation.
ADVISE®, FIRM®, and GEMS® are registered trademarks in the U.S. of Conning, Inc. Copyright 1990–2021 Conning, Inc. All rights reserved. ADVISE®, FIRM®, and GEMS® are proprietary software published and owned by Conning, Inc.
*For more information and disclosures regarding our industry recognition, please visit our website here.
# # #
+1 860 299 2391
+1 646 502 3548