How do extreme weather events impact investment decisions in mutual funds❓ Recent research by EDHEC Business School professors Dominic O'Kane and Teodor Dyakov suggests that personal experiences with extreme weather, such as abnormally high temperatures, significantly shape fund managers' perceptions of climate change and influence their investment strategies. Analyzing data from 280 global locations, the study reveals that heightened climate salience leads to increased demand for stocks with lower emissions and emission intensities. Key insights: ✔️ Fund managers in regions experiencing extreme temperatures tend to tilt their portfolios towards greener stocks, reflecting a growing concern for climate-related risks. ✔️ Non-green funds, typically less focused on sustainability, also show a notable shift towards lower-emission stocks in response to extreme climate events, signaling the broader impact of climate awareness. ✔️ As extreme weather events become more frequent, the study anticipates a further greening of portfolios as fund managers increasingly incorporate climate risks into their decision-making processes. This research highlights important trends for both investors and policymakers, offering deeper insights into how climate change influences global investment practices. Link to the online version in the comments. #SustainableInvesting #ClimateChange #ClimateFinance #GreenFinance #ESG #MutualFunds #ClimateRisk
EDHEC-Risk Climate Impact Institute
Services financiers
Delivering research insights on double materiality to the financial community #MakeGreenFinanceImpactful
À propos
The ambition of EDHEC-Risk Climate Impact Institute (EDHEC-Risk Climate) is to become a leading academic reference point for long-term investors, helping them to manage the asset-pricing implications of climate change as well as mitigation and adaptation efforts. We will build on the academic expertise developed by EDHEC-Risk Institute over the last 20 years, and capitalise on a significant research programme on sustainable finance and climate change that was launched years ago. Our mission is to help private and public decision-makers manage climate-related financial risks and make the best use of the financial tools available to transition to low-emission and climate-resilient economies. EDHEC-Risk Climate also aims to play a noted role in helping financial supervisors and policy makers assess climate-related risks in the financial system and understand how these link to the real economy. The results of our research will help them in advising on the policies and tools needed to mitigate those risks and optimise the contribution of finance to climate-change mitigation and adaptation. EDHEC-Risk Climate is located at campuses in the City of London in the UK, Nice in France, and Singapore. In partnership with large financial institutions, our team of permanent professors, engineers, economists, support staff and research associates are carrying out two long-term research programmes: • The implications of climate change on asset pricing and investment management • The impact of finance on climate change mitigation and adaptation The philosophy of the institute is to validate its work by publishing in prestigious academic journals, but also to make this research available to professionals. In this regard, we participate in industry debate through position papers, published studies, online courses, webinars, seminars and global conferences.
- Site web
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https://climateimpact.edhec.edu/
Lien externe pour EDHEC-Risk Climate Impact Institute
- Secteur
- Services financiers
- Taille de l’entreprise
- 11-50 employés
- Siège social
- Nice Cedex 3
- Type
- Non lucratif
- Domaines
- Academic Research, Portfolio Management, Investment Solutions, Executive Education, Risk Management, Risk Allocation, Smart Beta, Retirement Solutions, fixed income, stress testing, risk premia, sustainable investing, ESG, climate finance, Climate Change, Liability Driven Investing, green finance, sustainable finance et climate risks
Lieux
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Principal
393 Promenade des Anglais
06202 Nice Cedex 3, FR
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10 Fleet Place
Ludgate
EC4M 7RB London, GB
Employés chez EDHEC-Risk Climate Impact Institute
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Michael Edesess
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Jonathan Harris, PhD
Invest like it means something!
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Jaap van Dam
Experienced strategic sparring partner and critical friend for global top 100 asset owners. Doing great stuff with great people. Let's have a virtual…
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Alice James
Communications consultant, writer and editor
Nouvelles
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What’s next for SFDR and sustainable fund labels❓ Join the leaders in #regulation and #responsibleinvesting at Sustainable Investment Europe 2024 in London, organized by Reuters Events Sustainable Investment, where Frédéric Ducoulombier, Director of #EDHECRiskClimate, will participate in a workshop on September 30 discussing recent developments in the SFDR and how it is evolving into a labelling regime. Frédéric will provide valuable insights into the evolution of #SFDR and how upcoming changes are shaping the future of #sustainable fund labels. The discussion will explore how these regulatory advancements are driving standardisation and transparency, making it easier for investors to align with #ESG goals while avoiding the risks of misinterpreting labels. He will be joined by: ✔️ Nathalie Dogniez, Independent Director, The Directors' Office ✔️ Raphael Tietmeyer, Senior Analyst Climate & Company Find out more on this panel and the conference: https://lnkd.in/dQGRSz4v #SustainableInvestment #CSRD #SFDR #ESG #SustainableFinance #ClimateImpact #ClimateFinance
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🌍 Quel rôle l'industrie financière peut-elle/doit-elle jouer pour accélérer la transition climatique❓ Dans cet éditorial, Frédéric Ducoulombier, Directeur de l'EDHEC-Risk Climate Impact Institute, met en lumière l'importance des #investissements massifs dans l'atténuation et l'adaptation au #changementclimatique. Il appelle à une transformation de la finance pour qu'elle devienne non seulement un facilitateur, mais un catalyseur de cette transition indispensable vers des économies durables et résilientes https://lnkd.in/e8a3nuTH 💬 "L'intégration des enjeux de durabilité dans les processus décisionnels du secteur est une question d'auto-préservation, mais elle pourrait contribuer puissamment à l'allocation de capitaux vers des investissements durables." 💬 "L'industrie financière est toutefois particulièrement bien placée pour adopter un rôle proactif et exercer une influence déterminante sur les autres secteurs." Cet article a été initialement publié dans la newsletter de juillet d'#EDHECRiskClimate 👉 Consultez la newsletter ici https://lnkd.in/dnD5HB4D #FinanceDurable #FinanceClimatique #TransitionClimatique #AStepForward
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🔥 Over 40% of global #equity value is at risk if #decarbonisation efforts do not accelerate, with losses exceeding 50% when climate tipping points are factored in, reveals recent study by #EDHECRiskClimate. Prompt and robust abatement action is needed to keep losses below 10%. To reach these conclusions, the study implemented a probabilistic approach that accounted for #climate and #economic uncertainties and conducted a joint analysis of transition costs and physical risks. 💬 “These results underline the importance of uncertainty and state-dependent discounting for climate-aware equity valuation. Our approach shows that it is possible and fruitful to integrate climate risks into financial analysis and we will be working further to develop theoretically solid and practically implementable tools for climate-aware investment management,” said lead author, Professor Rebonato. The paper "How Does Climate Risk Affect Global Equity Valuations? A Novel Approach", conducted within the research chair established by EDHEC Business School and Scientific Beta is available here 👉 https://lnkd.in/dzHCf3r7 #ClimateFinance #ClimateRisks #ClimateChange
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🌟 Exciting News! 🌟 We are proud to share that EDHEC Business School has ranked 2nd in France and 4th worldwide in the 2024 Financial Times Masters in Management (MiM) ranking, with an impressive jump of 7 places! This remarkable advancement highlights the strength of EDHEC’s programmes, the success of its graduates, and its leadership in academic innovation and sustainability. 🌱 The 2024 FT ranking also spotlights EDHEC’s top standing in #ESG and #NetZero education, reinforcing its mission to equip students with the knowledge to address global challenges. Generations 2050, EDHEC’s strategic plan, aims to reimagine business education and foster a net-positive economy, restoring biodiversity and ensuring a sustainable future. The faculty and permanent researchers of the EDHEC-Risk Climate Impact Institute actively support the integration of climate-related issues into the curricula of EDHEC Business School degree programmes by 1️⃣ Design and teaching 2️⃣ Supervising graduate and doctoral students in their related projects and research, notably as part of the MSc in Climate Change and Sustainable Finance and the EDHEC PhD in Finance 3️⃣ Leading the design and delivery of the online course (4 MOOCs) on Climate Change and Sustainable Investing. 💚 Congratulations to the EDHEC community for this exceptional achievement and for shaping future leaders committed transform the global economy. #ProudlyEDHEC #MakeAnImpact #AcademicExcellence #Sustainability #DareToTry #ClimateFinance More info on the FT ranking 👉 https://lnkd.in/eSz_AFGR More info EDHEC’s strategic plan "Generations 2050" 👉 https://lnkd.in/dPRwyYxV
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[📖 #fridayreads] 40% of global equity at risk from current pace of decarbonization, study says. In an article 📰 published in Pensions & Investments, Christopher Marchant reports that global #equity could face a 40% downward correction if the current pace of decarbonization continues, according to research from the EDHEC Risk Climate Impact Institute. 💬 "If a more robust decarbonization approach were to be taken worldwide, the downward correction could instead be only 5-10%," the report notes. 💬 "As regulations inspired by the Taskforce for Climate-related Financial Disclosures (TCFD) are phased in globally, companies are increasingly assessing their exposure to climate risks," the article adds. The study "How Does Climate Risk Affect Global Equity Valuations? A Novel Approach" introduces a novel framework that integrates #assetpricing techniques with Integrated Assessment Models. It features a fully probabilistic treatment of #economic and #climate uncertainties, state-dependent discounting, and a consistent analysis of #transitioncosts and #physicaldamages. 📰 Read the full article 👉 https://lnkd.in/dh_mkb4S #ClimateChange #ClimateFinance #Decarbonization #GlobalEquity #ClimateRisk #ParisAgreement #TCFD #SustainableInvesting #PressReview
40% of global equity at risk from current pace of decarbonization, study says
pionline.com
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#ThursdayRelease Recent research by Gianfranco Gianfrate on ESG and corporate resilience during Covid19 crisis has just been published by Springer Nature Group in the Journal of International Business Studies (JIBS), a journal included in the FT50 list. Key findings: ✅ The resilience of firms with strong ESG ratings varied globally, with significant results observed in North America. ✅ A substitution effect was identified between firm-level sustainability performance and country-level sustainability, particularly in relation to healthcare coverage. ✅ ESG performance influences not only equity markets but also international corporate debt markets, with stronger resilience noted in both credit default swaps and in bond markets. This research was co-authored with Mirco Rubin, Dario Ruzzi, and Mathijs van Dijk. 👉 Read the full article, “On the resilience of ESG firms during the COVID-19 crisis: evidence across countries and asset classes“, here: https://lnkd.in/dM2vR5Vs #ESG #COVID19 #Equity #valuation #CreditDefaultSwap #CorporateBonds
On the resilience of ESG firms during the COVID-19 crisis: evidence across countries and asset classes - Journal of International Business Studies
link.springer.com
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📰 Discover the very first edition of EDHEC’s Climate Finance Highlights! Driven by our institutes and initiatives, including EDHEC-Risk Climate, EDHEC Infra & Private Assets Research Institute, and Scientific Portfolio, an EDHEC Venture, this newsletter brings you the latest #climatefinance cutting-edge research and practical applications. This quarter, we explore key developments in climate #riskmanagement, #sustainable #infrastructure, and innovative financial strategies to address the pressing challenges of #climatechange. 📖 To read this newsletter online 👉https://lnkd.in/dnMzVEqz ✉️ To subscribe to this quarterly newsletter, please contact maud.gauchon@climateimpactedhec.com 🔍 To discover the hub dedicated to EDHEC Business School's Climate Finance Research 👉 https://lnkd.in/dFZzTNCn #MakeAnImpact
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📗 Study reveals 40% of global equity value at risk without accelerated decarbonisation efforts. New research, supported by Scientific Beta 🤝, highlights the significant impact of #climaterisk on global #equity valuations, particularly in scenarios with limited #climate action. The study introduces a novel framework that integrates #assetpricing techniques with Integrated Assessment Models. It features a fully probabilistic treatment of economic and climate uncertainties, state-dependent discounting, and a consistent analysis of transition costs and physical damages. The findings show that severe impact on equity valuation can be obtained with very plausible combinations of policies and physical outcomes, with significantly more downside than upside risk. Over 40% of global equity value is at risk unless decarbonisation efforts accelerate, and losses could exceed 50% with near climate tipping points. 🔗 Download the full paper 👉 How Does Climate Risk Affect Global Equity Valuations? A Novel Approach: https://lnkd.in/drsYGY7W
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#MondayThoughts 🤔 "Finance for the Transition and Transition of Finance" In the editorial https://lnkd.in/dXPNTZaY of the July newsletter of the Institute, Frédéric Ducoulombier, Director, discusses the critical role of the financial industry in addressing #climatechange. 🚨 He emphasizes the urgent need for increased investment in climate change mitigation and adaptation, highlights the potential role of the financial industry as a facilitator and accelerator of the #climatetransition, and identifies necessary updates to bring about this transition in finance. 📧 Contact us at research@climateimpactedhec.com to subscribe to this complimentary newsletter.
Finance of Transition, Transition of Finance
climateimpact.edhec.edu