We are in the process of advancing our response to the recommendations of the TCFD. We have commenced with some limited climate analysis modelling through pilot programs and testing a subset of our portfolios, but not systematically across the whole Pendal Australia portfolio. To date, we have focused on stock-specific assessments of exposure to transition risks and physical risks, as well as measuring the carbon intensity of portfolios. For example in the past 12 months our Fixed Income team collaborated with Regnan on a water-risk assessment project and we are in the process of expanding the scope of the research to equities.
However, we are actively working on securing a service provider in CY2020 to support our capacity to undertake scenario analysis and stress testing thoroughly and consistently across all of our holdings and are trialling a number of providers to support a tailored in-house and asset class specific approach.
We also conduct scenario analysis based on financial risk factors (including market & liquidity risk).