(Newsletter #14) ESG, climate finance, green bonds... EDHEC on the frontline: what’s next?

Green finance, responsible investment, ESG funds... the diversity of terms used today reflects the profound changes in the financial industry's relationship to ‘extra-financial’ issues.

New professions and new labels are multiplying, illustrating the involvement of a sector scrutinised and eagerly awaited in all aspects of sustainability, adaptation and transition. Yet, decision-makers, investors, fund and portfolio managers seem, like the rest of society, torn between ‘business (finance) as usual’ and ‘business (finance) for good’...

EDHEC professors and researchers, as well as the various initiatives of a historical and fertile ecosystem in finance, have set themselves the mission - by breaking new intellectual ground - of informing and equipping these actors as best as possible.

Standards, physical risks, price signals, exclusions... this newsletter offers a sample of the latest work that takes a very concrete look at current practices, their limits and the frontiers that need to be pushed.

Don't forget that all these articles are available in French.

Happy reading!

Fund managers play an important role in translating environmental concerns into asset prices

By Teodor Dyakov - EDHEC Associate Professor, EDHEC Climate Institute Affiliate member, and Dominic O'Kane - EDHEC Professor, EDHEC Climate Institute Research Director

The authors have analysed the impact of climate salience on the investment decisions taken by more than five thousand fund managers around the world. Do managers update their preferences for green assets following prolonged heatwaves? Is that informative for the risks and returns of sustainable investment...? Read this article

ESG scores vs. ESG exclusionary screening: do they tell the same story?

By Vincent Bouchet - Scientific Portfolio (an EDHEC Venture) ESG Director, Jenna Jones - former SP Senior Product Specialist, Aurore Porteu de La Morandière - Scientific Portfolio (an EDHEC Venture) ESG & Quant Researcher, and Shahyar Safaee - Scientific Portfolio (an EDHEC Venture) Deputy CEO. Along with Mathieu Joubrel - ValueCo COO

What is the relationship between two prominent strategies in sustainable investing: ESG integration, based on ESG scores, and exclusionary (i.e., negative) screening, which targets companies involved in harmful activities or behaviour ? By analysing hundreds of equity indices, the researchers shed light on whether these approaches lead to similar decisions in sustainable portfolio management... Read this article

3 questions to Noël Amenc: will there be a climate problem again with Donald Trump’s new mandate?

With Noël Amenc - EDHEC Associate Professor of finance (Singapore) and Director of the EDHEC Climate Institute

The interviewee harshly criticises the latest political, economic and financial decisions taken across the Atlantic. He calls for a European intellectual and scientific revival. In his opinion, EDHEC Business School can and must play its part with comparative advantages and remarkable existing and ready to be launched solutions... Read this interview

Finance and climate change: what Riccardo Rebonato teaches us

Based on the work by Riccardo Rebonato - EDHEC Professor, EDHEC Climate Institute Senior Scientific advisor

What would an exchange between a student who is a fan of one of our climate finance researchers, her slightly out-of-touch classmate and this very professor be like ? Our latest carousel represents this hypothetical conversation in comic book format, to give you the keys to the main questions, analyses and energy put into the crucial subject of "Finance & Climate Change"... Discover this carousel

Felix Goltz: "Investors are increasingly wary about ESG metrics that boil down to subjective opinions"

With Felix Goltz - Scientific Beta Director of Research

What are the (main) challenges of ESG indicators? Why and how does the subjectivity of ratings fuel investor frustration with unreliable data? The interviewee discusses the need for fact-based, forward-looking measures and the rise of new ESG metrics, urging investors to prioritize quality over convenience to drive meaningful improvements... Read this interview

Introducing EDHEC Climate Institute: a new interdisciplinary hub for climate research and action

By Anthony Schrapffer - EDHEC Climate Institute Scientific Director

The author presents EDHEC's new research-based initiative that defends an integrated vision, drawing on a recognised historical expertise in climate finance. The objective is to leverage new complementary fields – spatial data, AI, regulation… – to provide society with transparent, evidence-based insights that can guide businesses, policymakers, and communities toward informed and effective climate action... Read this article

A look at the importance of certifying “green” credentials for corporate debt

By Gianfranco Gianfrate - EDHEC Professor, EDHEC Climate Institute Research Director

Green bonds are used to finance environmentally friendly projects, primarily related to climate change mitigation and adaptation initiatives. The author investigates the informative content issued by their external reviewers, analysing their impact by putting together the largest global sample of corporate green bonds to date... Read this article

Nicolas Schneider: "For investors and industries, more granular information on physical risk impacts means a better adaptability to future shocks"

With Nicolas Schneider - EDHEC Climate Institute Senior Research Engineer – Macroeconomist

Why moving beyond early models that relied on global averages is key? The granular approach reveals previously overlooked vulnerabilities, through regional differences and the impact of extreme weather. The interviewee's forthcoming work builds on high-resolution climate models, covering 95% of global economic production. It confirms that localized risks amplify global damage... Read this interview

Meet Gianfranco Gianfrate, a Professor of sustainable finance whose passion for practical research has put him at the heart of change

A portrait of Gianfranco Gianfrate - EDHEC Professor, EDHEC Climate Institute Research Director

"Being involved in policy making is extremely important”, he explains. “Especially to fight greenwashing and further the dialogue between institutions and corporations. Companies and markets alone won’t help us achieve ambitious climate goals—there’s little incentive for them to do so today. Finance needs to be part of the solution, but we must stop believing it is the solution...” - Read this portrait

Illustration (header) 2025 - Anne Moreau