AMUNDI "Measuring and Managing Climate Risks in Investment Portfolios”
Presentation of the Partner
About Amundi
Amundi, the leading European asset manager and pioneer in responsible investing, ranks among the top 10 global players[1] and offers its 100 million clients savings and investment solutions in active and passive management, in traditional or real assets.
Already incorporating ESG criteria in 100% of its actively managed open-ended funds[2] and engaged in the energy transition and social cohesion, Amundi launched its Ambition 2025 plan, with 10 objectives to accelerate its ESG transformation and pave the way towards carbon neutrality by 2050. Amundi is also a member of the Net Zero Asset Managers initiative and a founder of the Investors for a Just Transition coalition.
With six international investment hubs[3], Amundi’s clients benefit from the expertise of 5,300 employees in over 35 countries. A subsidiary of Crédit Agricole and listed on the stock exchange, Amundi currently manages €1904 trillion assets[4].
Amundi, a leading responsible investor engaged in the just transition
1- Source: IPE “Top 500 Asset Managers” published in June 2022, based on assets under management as at 31/12/2021
2- Since December 2021
3- Boston, Dublin, London, Milan, Paris and Tokyo
4- Amundi data as at 31/12/2022
Presentation of the Partnership
Objectives
The Amundi “Measuring and Managing Climate Risks in Investment Portfolios” research chair at EDHEC-Risk Climate Impact Institute aims to investigate whether it is possible to identify a measure of climate-change risk, and if so, to investigate whether it can be used to construct optimal portfolios with respect to climate-change risk.
The first part involves the creation of a climate change news index, using a variety of language models and high-quality English-language newspaper sources (including the Financial Times for the first time in the literature). The second part aims to use this index to create climate-change risk hedged portfolios.
Research Outputs:
The impact of climate change news on green-minus-brown portfolios, Climate & Finance special issue of the EDHEC Research Insights supplement
Dominic O’Kane and Jean-Michel Maeso
The Impact of Climate Change News on Low-minus-High Carbon Intensity Portfolios, EDHEC-Risk Climate Publication
Forthcoming
Dominic O’Kane and Jean-Michel Maeso
Investigating the Influence of News Sources and Language Models on Climate Beta Estimates, The Journal of Portfolio Management, Special Issue on Novel Risk
Forthcoming
Dominic O’Kane and Jean-Michel Maeso
About EDHEC
Operating from campuses in Lille, Nice, Paris, London and Singapore, EDHEC is one of the world’s top 15 business schools. Fully international and directly connected to the business world, EDHEC commands a strong reputation for research excellence and the ability to train entrepreneurs and managers capable of breaking new ground. EDHEC functions as a genuine laboratory of ideas and produces innovative solutions valued by businesses. The School’s teaching is inspired by its research work and a focus on “learning by doing”, all with the aim of equipping people with the skills to succeed in business.
