Videos & Podcasts

Going deep on physical climate risk

Reading time
:
1mn
While extreme weather events often dominate the headlines, investors should also pay close attention to the less visible but accumulating impacts of chronic climate risk. Nicolas Schneider of the EDHEC Climate Institute discusses why these long-term physical risks matter for investors on The New Private Markets Podcast.
podcast New Private market Nicolas Schneider

With much of Europe experiencing exceptionally high temperatures this summer, physical climate risk is becoming an increasingly important consideration for investors. Yet assessing how these risks translate into economic impacts and portfolio exposure remains a complex challenge.

In this episode of The New Private Markets Podcast, Nicolas Schneider, Senior Research Engineer and Macroeconomist at the EDHEC Climate Institute, shares his insights into the financial implications of physical climate risk. The conversation also explores EDHEC-CLIMAP (EDHEC Climate-Induced Regional Macroimpacts Projector), an interactive tool developed by the Institute to help investors assess the economic effects of climate change across regions and under different warming scenarios.

Recorded during London Climate Action Week at PEI Group’s London office, the discussion with NPM’s Toby Mitchenall addresses several key issues for investors, including:

  • Why physical climate risks may not yet be fully reflected in market prices and asset valuations;
  • Why investors need to look beyond highly visible acute weather events and consider the cumulative effects of chronic, compounding climate risks;
  • How projected GDP losses under a 3°C warming scenario could affect large institutional portfolios.