The Inevitable Policy Response to climate change

What makes IPR distinct from other scenarios:

IPR scenarios are designed to provide a market view around which financial institutions can base their central expectations. IPR is driven by a detailed assessment of likely policy trajectories in the short and long term, grounded in transparent views on major policy areas across all major countries/regions.

• This in contrast to ‘hypothetical’ scenarios based on a temperature constraint or on assuming stated commitments are met.
• IPR is transparent about the policy expectations so that financial institutions can understand the specific views that drive the scenarios.
• IPR takes into account critical technology and market forces that facilitate policy shifts and that are accelerated by policy shifts.
• As a result of this, IPR also provides a more realistic short-term trajectory and a well-grounded view of the shape of the transition over time.

What does IPR produce ?

The most extensive set of publicly available scenarios and underlying investor value drivers. This enables financial institutions to assess the risks and opportunities across the major sectors impacted by climate transition.

It also enables financial institutions to assess with greater granularity decisions about climate risk management and net zero alignment.

Energy, systems and land use

Apart from energy systems much of the detailed scenario analysis is related to food and land-use systems. IPR looks at the land-use related transition more thoroughly than other scenarios, including the extent of possible dietary shifts, the development of bioenergy, and the emergence of nature-based solutions (NBS).

Investor Value

By providing both the Forecast Policy Scenario (FPS), our most likely scenario and the Required Policy Scenario (RPS) our 1.5-degree scenario, IPR enables financial institutions to consistently assess:

• a forecast scenario for a risk and return central case (FPS)
• a full 1.5-degree net zero pathway (RPS) that:
  • investors could choose to align to, and
  • can be used as a stress test