Overview
Inevitable Policy Response (IPR) is a climate policy analysis initiative established in the late 2010s to assess how governments are likely to respond to climate change and what this means for financial markets. It was developed to address the gap between stated climate ambitions and the policy actions required to meet them. IPR’s work is designed primarily for investors and financial decision-makers.The initiative is hosted by the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science. While institutionally anchored in academia, IPR operates as a distinct programme with its own analytical framework and outputs.
Mission and focus areas
IPR’s core mission is to forecast the timing, nature and impact of climate-related policy responses that governments are expected to implement as physical climate risks intensify. It focuses on identifying “inevitable” policy actions rather than aspirational commitments.Its work centres on climate transition risk, sovereign and sector-level impacts, and macro-financial implications. IPR contributes to sustainable finance by helping investors integrate forward-looking climate policy risk into portfolio construction, risk management and strategic asset allocation.
Structure and governance
IPR operates as a dedicated research programme within the Grantham Research Institute, drawing on economists, climate policy experts and financial analysts. It has identifiable leadership and research leads responsible for methodology development and outputs.The initiative collaborates with financial institutions, asset owners and policy experts, while maintaining analytical independence. Governance is aligned with academic research standards and public-interest objectives rather than commercial client delivery.
Programs and offerings
IPR produces scenario-based research, analytical reports and datasets focused on climate policy pathways and their economic effects. A flagship offering is the IPR Transition Monitor, an online tool that tracks climate policy expectations across countries and sectors.Its outputs are used by investors to assess transition risk, stress-test portfolios and inform engagement and stewardship strategies. The emphasis on policy inevitability and timing distinguishes IPR from traditional climate scenario and disclosure frameworks.
