IPE EDHECInfra & Private Assets Research Insights Summer 2023 Supplement is out!
Written on 08 Sep 2023.
EDHEC Infrastructure & Private Assets Research Institute just published the infrastructure investment special issue to Investment & Pensions Europe (IPE)
This supplement, prepared by EDHEC Infrastructure & Private Assets Research Institute, aims to provide European institutional investors with an academic research perspective on the most relevant issues in the industry today. It contains articles of particular relevance to asset owners:
In the first article, they look at the use of data to produce a benchmark or comparable (‘comp’) of the climate risks of infrastructure companies. Few data points are available for comparable assets and a typical ‘comparable’ can look very ad-hoc and unrepresentative if it is based on fewer than a dozen data points. They discuss EDHECinfra & Private Assets data that is both granular and robust.
In the second article, they present a model that intertwines financial and macro-economic variables with Network for Greening the Financial System (NGFS) scenarios to make asset-level, scenario-dependent projections until 2050 of financial indicators such as revenues, profits, discount rates and valuation.
In the third article, they summarise the findings of a new paper in which they examine the public’s sentiment toward wind power generation in the United States and the United Kingdom. Monitoring public attitudes towards infrastructure sectors is necessary to detect changes in public opinion, intervene promptly and ensure projects can develop without interruptions. However, monitoring public opinions remains a challenge. Their study applies Natural Language Processing (NLP) techniques to analyse various text sources and to provide the infrastructure industry with novel social acceptance indices that indicate public support and social risk factors.
In the closing article, they present a new study by EDHECinfra & Private Assets, which indicates that $1.6trn of the European infrastructure asset class (European Economic Area and the UK) by size is likely to qualify as sustainable under the EU Taxonomy for Sustainable Activities, while only $10bn of assets by size is likely to have no sustainable characteristics and could be stranded in the transition to a low-carbon economy. An additional $235bn of infrastructure is not aligned with the EU taxonomy’s definition of sustainability.
The infrastructure investment special issue of the EDHEC Infrastructure & Private Assets Research Institute Research Insights supplement to IPE proposes the following articles:
- TCFD: Where are your ‘climate comps’!?, by Darwin Marcelo, Project Director, EDHECinfra & Private Assets
- Including climate risks in infrastructure asset valuation, by Bertrand Jayles, Senior Sustainability Data Scientist, EDHECinfra & Private Assets; Abhishek Gupta, Associate Director, EDHECinfra & Private Assets; Tim Whittaker, Research Director, EDHECinfra & Private Assets; Frédéric Blanc-Brude, Director, EDHECinfra & Private Assets
- Social acceptance analysis using social media, by Jeanette Orminski, Senior Sustainability & ESG Researcher, EDHECinfra & Private Assets; Jianyong Shen, Senior Research Engineer, EDHECinfra & Private Assets
- European infrastructure assets and the EU green taxonomy, by Nishtha Manocha, Senior Research Engineer, EDHECinfra & Private Assets; Rob Arnold, Director of Sustainability Research, EDHEC-Risk Climate Impact Institute; Frédéric Blanc-Brude, Director, EDHECinfra & Private Assets
Related link:
IPE EDHECInfra & Private Assets Research Research Insights Supplement, Summer 2023
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.
