EDHEC-Risk Climate February 2024 Newsletter is out!

Written on 19 Feb 2024.

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We are delighted to present our February newsletter, providing breakthrough research on climate scenario analysis and stress testing, articles on scope 3 emissions data, internal carbon pricing, and discussions on green bonds and greenwashing challenges for financial regulation.

Frederic Ducoulombier, Director of EDHEC-Risk Climate opens the editorial, with an article entitled "Greenwashing Regulation", looking at the increasing calls to combat greenwashing in the financial sector. He reflects upon the European Union’s experience as the first-mover in the implementation of a sustainable finance framework and draw on our recent contributions to regulatory consultations to point towards required corrections and extensions to protect investors and foster the transition to a sustainable economy.

The feature “Bridging the Gap: Making Climate Scenarios Fit for Investors” summaries the key insights from our foundational White Paper on the probabilistic extension of scenario analysis and stress testing tools. The paper explains how to enhance the powerful IPCC framework with probabilistic data to improve its relevance for risk and investment practitioners. It uses empirical analysis to identify strong relationships between economic, demographic, and technological variables and derive valuable insights into the likelihood of various climate outcomes, including extreme events. By offering distributions of climate outcomes, such as temperature variations, damages, and cash flow impairments, this novel framework equips financial decision-makers with vital tools to effectively manage climate-related risks.

The newsletter includes:


The newsletter also features an interview “Climate Risk Integration: A Global Investor Concern” with Felix Goltz, Scientific Beta Research Director, who discusses ESG integration in factor investing, the role of academic research, the strategic shifts in research themes over time, the rationale behind Scientific Beta's climate index series, and the Scientific Beta and EDHEC-Risk Climate research chair established recently to further research into climate risk modelling.

Additionally, it provides information on EDHEC-Risk Climate’s latest research publications, events, videos and news, and also includes a press review.


EDHEC-Risk Climate Newsletter - February 2024 Issue

Access all articles here EDHEC-Risk Climate Newsletter - February 2024 Issue