University of Exeter spin-out sets new standard to help investors navigate the climate transition
A new company will guide investment professionals through the risks and opportunities of the shift to a lower-carbon economy and impacts of extreme weather events
Transition Risk Exeter Limited (Trex) – a University of Exeter spin-out company – provides climate scenario analysis for enhanced investment resilience.
Its core message is that the idea of gradual, linear climate change is “dangerously obsolete”.
Trex’s climate scenario platform offers a new category of climate analysis – a “non-linear” approach to help investors understand tipping points, systemic risks and opportunities.
Working with major names including USS, NatWest and Generation Investment Management, Trex will help investors build portfolios that are not only more resilient but also better positioned to capitalise on emerging opportunities.
“Linear models fail to capture the diverse range of real-world drivers that determine the winners and losers of the energy transition and changing climate,” said Trex co-founder and co-CEO Willemijn Verdegaal.
“These models also fail to reflect climate tipping points that have the potential to trigger sudden, irreversible changes that can dramatically reshape the investment landscape.
“Our non-linear models enable us to move beyond this traditional analysis, that is no longer fit for purpose.”
Co-founder and co-CEO Jack Oliver added: “We quantify economic and financial impacts of plausible near-term narrative scenarios that reflect the systemic dynamics of the real world, over timescales that matter to investors.
“We rely solely on methods and models drawn from peer-reviewed academic papers developed by our scientific founders. Everything we do is transparent and intuitive.”
Professor Lisa Roberts, President and Vice-Chancellor of the University of Exeter, said: “The University of Exeter’s vision – to use the power of our education and research to create a sustainable, healthy and socially just future – requires us to work across academia and beyond, putting our expertise to practical effect.
“Our latest spin-out, Trex, is a great example of our world-leading systems thinking and tipping points research supporting the investment community to strengthen commercial resilience.”
Stuart Brocklehurst, Deputy Vice-Chancellor for Business Engagement and Innovation, added: “Trex is already making a real impact on the understanding of climate risks, which in turn drives financial institutions to make choices which can help steer us away from the most adverse scenarios.
“The University of Exeter is home to more of the top hundred climate scientists than any other institution in the world, it’s great to see this practical translation of that expertise through this spin-out, one of many ways in which our academics are driving real change in the world.”
