In the Press
Read about how EDHEC’s climate finance research is influencing discussions and decisions in the broader financial community through featured articles and press mentions.
Unmanaged Climate Risks Undercut AI’s Investment Thesis
Forbes
How much attention to the risks of a climate-related crash is warranted? At a minimum, investors must be attuned to emerging climate science and its implications. According to an October 2024 analysis from the EDHEC Risk Climate Impact Institute, global equity valuations could drop as much as 40% if emissions reductions do not accelerate. This projection does not factor in tipping points, such as the collapse of the West Antarctic glacier and the thawing of methane-rich Arctic permafrost, that if reached would further destabilize the economy.
Aggressive climate action needed to preserve stocks' value, paper says
Reuters
Decision makers should pursue aggressive policies to bring climate change under control if they want to avoid losses in the value of global stocks that could top 50%, think-tank EDHEC-Risk Climate Impact warned in a 74-page paper published on Wednesday.
The Market’s Next Black Swan Is Climate Change
Bloomberg
Failing to do more to slow the planetary heating caused by greenhouse-gas emissions will gouge 40% from global equity valuations, estimates a new study by the EDHEC-Risk Climate Impact Institute. Accounting for climate-change-accelerating “tipping points” such as Amazon-rainforest dieback or a Big Burp of gas from melting permafrost, the market losses rise to 50%. On the other hand, if the world gets its act together and limits warming to 2 degrees Celsius above preindustrial averages, then the hit to stock prices will be just 5% to 10%.
“Death by a thousand cuts” - why climate risk isn’t priced in
Net Zero Investor
Investors who wish to model for climate change already have different scenarios at hand, what is different about the Climate Scenario Analysis EDHEC is providing?
The quality of the IPCC sponsored SSP RCP scenarios is very high, they have been created by top academics, there is no question about it. The problem is that they were not created with investors in mind. They fall short of providing the information investors need. By design, they have been created without any probabilities attached to them at all...
Opponents of mandatory Scope 3 reporting are ‘confusing the symptom for the cause’
Sustainable views
Regulation making it mandatory to report upstream and downstream emissions will make life easier, not harder, for companies, argues the EDHEC-Risk Climate Impact Institute
Fighting climate change through financial innovation
Investment & Pensions Europe
Reporting of value chain emissions, whether upstream such as purchased goods, or downstream – such as product use (think combustion of fossil fuels), will be abandoned. Investor advocacy for value-chain emissions (Scope 3) reporting and its possible incorporation within a US Securities and Exchange Commission (SEC) climate-disclosure rule have sparked fierce resistance from fossil-fuel interests...
Viewpoint: Investor climate scenarios need to be probability-aware
Investment & Pensions Europe
The question of what impact climate change will have on investors’ portfolios is becoming increasingly difficult to avoid and the need for scenario analysis is becoming more and more acutely felt. Climate scenarios, however, are more complex than the traditional macrofinancial scenarios with which financial practitioners are well familiar...
More meaningful corporate sustainability reporting required
The Banker
The backtracking by lawmakers on mandatory requirements for corporate reporting could undermine the original intention of the Corporate Sustainability Reporting Directive, users of disclosure statements fear...
How much will physical climate risk cost?
Infrastructure Investor
Physical risk to infrastructure assets can result in major losses, and sooner than many expect. The EDHEC Infrastructure & Private Assets Research Institute quantifies those losses in different climate scenarios...
Extreme weather could burn investment portfolios by mid-century
The Conversation Europe
Climate change is one of the most pressing challenges facing humanity today, with potentially severe implications for infrastructure assets. Infrastructure investments such as roads, bridges, ports, airports, and power plants have long lifetimes, typically spanning several decades...
Climate change hits infrastructure investments
Capital Monitor
EDHEC’s Noel Amenc and Frederic Blanc-Brude argue that physical risks caused by climate change already threaten infrastructure investments and could cause massive losses before 2050...
Infrastructure faces $600 billion hit in worst-case climate shift - study
Reuters
Infrastructure investors face losing nearly a third of their money, or around $600 billion, if countries do not plan for an orderly shift to a greener economy by mid-century, a first-of-its-kind study shared with Reuters showed....
