Research for Institutional Money Management

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Pensions&Investments 01/04/2024


"In this EDHEC-Risk Climate Impact Institute issue of Research for Institutional Money Management, we present groundbreaking research extending climate scenario analysis.

The current framework, designed to inform public policy, cannot properly serve the needs of investors: alternative scenarios are presented without probabilities and fail to convey the uncertainty in climate outcomes.

Our lead article demonstrates how to create probability distributions of climate outcomes, helping investors appreciate the degree of uncertainty they face and determine which potential realizations should command greater attention.

Building on these advances, two related articles highlight underappreciated risks that investors need to be aware of. In the wake of the SEC's decision to mandate climate disclosures, another two articles examine the relevance, limitations, and risks associated with disclosures of internal carbon prices and value chain emissions.

A final contribution, supported by Amundi, explores how weather events influence mutual fund managers' investment decisions.

Detailed Content

- How Can Strategic Investors Deal with Climate Uncertainty? Riccardo Rebonato

- Internal Carbon Pricing: Impact or Greenwashing? Gianfranco Gianfrate

- Assessing the RCP/SSP Framework for Financial Decision Making. Dherminder S. Kainth

- Climate Salience and the Demand for Green Stocks by Mutual Funds Around the World. Teodor Dyakov and Dominic O'Kane

- Dealing with Climate Change: Asset Pricing Implications of Monetary and Fiscal Choices. Riccardo Rebonato

- Scope for Divergence – The Status of Value Chain Emissions Accounting, Reporting and Estimation and Implications for Investors and Standard Setters. Frédéric Ducoulombier


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Research for Institutional Money Management