EDHEC Speaker Series: Climate Finance
In early 2022, EDHEC Business School launched the monthly online EDHEC Speaker Series "The Future of Finance", to explore the latest developments in the financial industry and discuss how finance can address critical economic and societal challenges. So far, the EDHEC Business School Speaker Series has gathered hundreds of online participants – students, researchers, finance professionals – with over 25 speakers from top academic and financial institutions.
Professor Kacperczyk’s pioneering research examines Net-Zero Portfolios (NZP), which aim to bring carbon footprint exposure to zero by a target date. These portfolios are increasingly popular for aligning investor incentives with climate goals and exerting pressure on carbon-emitting companies.
A key focus of this session will be Professor Kacperczyk’s development of a novel, forward-looking metric, “distance-to-exit” (DTE), which measures the projected years until a company may be excluded from NZP. Firms with a longer DTE tend to have higher valuation ratios and lower expected returns, suggesting that DTE could serve as a valuable indicator of carbon-transition risk, capturing the uncertain pressures for institutional decarbonisation.
The session will be moderated by Riccardo Rebonato, Scientific Director of EDHEC-Risk Climate Impact Institute and Professor of Finance at EDHEC Business School.
