PRI_Webinar_Physical_Risks

Assessing Physical Risks: Data, Models, and Market Implications

 

Climate change is disrupting supply chains, driving economic losses, and creating risks that remain underpriced by financial markets. To address these challenges, the Principles for Responsible Investment (PRI) has launched a four-part workshop series on physical risk in 2025, featuring external experts.

In this second session, the EDHEC Climate Institute will contribute insights from Professor Riccardo Rebonato, focusing on the key question: “Assessing Physical Risks – What tools & resources exist? How can we improve current models & frameworks?”

Discussion will highlight three pressing challenges:

  • The shrinking availability of public climate data

  • The limitations of backward-looking scenario analysis, which risk underestimating future climate-driven impacts

  • The question of whether and to what extent climate risks are already priced into asset values — a topic that has become politicised in some markets but requires rational, evidence-based dialogue

Participants will explore how investors can improve their understanding of physical risks, assess how these risks are (or are not) incorporated into market valuations, and strengthen the integration of these insights into investment practices.

Featured Expert

Professor Riccardo Rebonato
Scientific Advisor, EDHEC Climate Institute

Professor Rebonato will present insights from his recent research, including:

His remarks will underline the importance of improving climate scenario modelling, and the consequences of underestimating physical risks for equity valuation. The discussion will also set the stage for the next session in the series, which will focus on building resilient portfolios.

Programme

  • 10 minutes – Opening remarks and framing by Kimberly Gladman, Senior Specialist, Climate Technical Guidance, PRI

  • 30 minutes – Fireside chat with Professor Riccardo Rebonato

  • 15 minutes – Open-floor discussion with participants

  • 5 minutes – Closing reflections

Why Attend

This interactive session offers investors an opportunity to:

  • Understand the tools and data currently used in assessing physical climate risk

  • Explore the limitations of existing models and frameworks and how they can be improved

  • Examine the extent to which physical risks are already reflected in asset prices — and the implications if they are not

  • Gain insights into the link between physical risks, market pricing, and portfolio resilience

The session is designed for asset owners, investment managers, and service providers from the Americas, but welcomes participation from the global investment community.

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