This section provides access to our official communications and media presence. It includes press releases outlining key announcements, initiatives, and milestones, as well as a selection of press reviews highlighting external coverage of our work. We invite journalists, partners, and stakeholders to consult these materials for accurate and up-to-date information.
Infrastructures côtières menacées : comment mieux évaluer les risques climatiques pour mieux les anticiper ?
Élévation du niveau de la mer, intensification des tempêtes… La concentration d’infrastructures sur le littoral les place en première ligne face au changement climatique. Les risques sont nombreux : paralysie des transports, coupures d’électricité, ruptures d’approvisionnement. De quoi inviter à mieux mesurer ces vulnérabilités pour mieux anticiper et prévenir les impacts. Ce travail est aujourd’hui compliqué par des données souvent partielles, des méthodes trop diverses et l’absence d’un cadre commun pour bien appréhender le risque.
La tragédie de la transparence climatique : « Des marchés mieux informés ne corrigent pas d'eux-mêmes la trajectoire »
Il y a dix ans, Mark Carney promettait que la transparence climatique transformerait les marchés et accélérerait la transition. Bilan : l'information n'a jamais été aussi riche, l'action jamais aussi insuffisante, et les régulateurs battent aujourd'hui en retraite, analyse Frédéric Ducoulombier, de l'EDHEC Business School.
The Banker: why banks’ credit risk models are blind to climate shocks
Regulators need to change the rules to ensure adequate climate risk management, write Rémy Estran-Fraioli, CEO of Scientific Climate Ratings and chair of the European Association of Credit Rating Agencies and Frédéric Ducoulombier, program director for climate regulation and policies at EDHEC Climate Institute and member of the Strategic Orientation Committee of Scientific Climate Ratings, in a recent article published by The Banker.
ClimaTech to Launch Global Framework for Climate-Resilient Infrastructure and Decarbonisation at November 2025 Webinar : EDHEC Climate Institute
The ClimaTech project will unveil a global framework for infrastructure resilience and decarbonisation in a public webinar on Wednesday, November 5, 2025. The session runs at 9pm SGT, 2pm CET, 1pm GMT, and 8am EST, and targets asset owners, investors, policymakers, and researchers who need a clearer path through climate risk and regulatory complexity.
Viewpoint: The tragedy of the horizon, act II – from promise to peril
10 years on from Mark Carney’s seminal speech, Frédéric Ducoulombier, programme director at EDHEC Climate Institute, says a focus on disclosure stayed difficult but vital action from policymakers.
Copyright:Copyright: Investment & Pensions Europe (IPE)
| Copyright: Investment & Pensions Europe (IPE)
Why banks’ credit risk models are blind to climate shocks
Rémy Estran-Fraioli is the CEO of Scientific Climate Ratings and chair of the European Association of Credit Rating Agencies; Frédéric Ducoulombier is programme director for climate regulation and policies at EDHEC Climate Institute, and a member of the Strategic Orientation Committee of Scientific Climate Ratings
Banks are still flying blind on climate risk — and regulators are partly to blame.
EDHEC Climate Institute's New Interactive Climate & Economic Visualisations
The EDHEC Climate Institute is releasing two new interactive visualisations that combine scientific rigour with accessibility, enabling users ― including scientists, policymakers, financial professionals, and the broader public to explore future climate and emissions pathways, and their projected economic impacts.
EXCITE enables users to simulate possible global surface temperature outcomes under a wide range of greenhouse gas emissions scenarios, including IPCC AR6 and NGFS scenarios. It offers the ability to:
(...) Climate adaptation remains an ill-defined subject. The EDHEC Climate Institute recently held its EC-EIB Adaptation Days conference, and delegates lamented that climate adaptation is often conflated with climate mitigation. The case for net zero is well accepted: that the world must decarbonise or face the consequences of a three-to-five-degree Celsius increase in global average temperature by 2100 relative to pre-industrial levels, in a worst case scenario.
EDHEC Business School: Advancing thought leadership in sustainable business
(...) A cornerstone of EDHEC’s strategic roadmap is its $88 million investment in climate finance – part of a broader $316 million institutional plan. Building on its reputation in financial research and asset management, EDHEC is applying the same rigor to understanding climate-related financial risks. Its research teams, under the leadership of the EDHEC Climate Institute, are developing climate data tools that investors can use to assess the vulnerability of infrastructure to environmental threats, such as wildfires and flooding.
“Our goal is to make sustainability measurable – as measurable as a company’s financial returns,” Métais explains. “We’re not just publishing papers; we’re creating usable, science-based models for real-world decision-making.”
New climate ratings agency targets risk for infrastructure
(...) The climate finance division of French business school Ecole des Hautes Etudes Commerciales du Nord has developed a scientific climate ratings agency that looks to identify climate risk in the infrastructure sector. The ratings will combine research from areas such as financial materiality, geospatial data, climate risk models and the financial datasets for infrastructure assets. The ratings also evaluate both transition risks, linked to the shift toward a low-carbon economy, and physical risks, arising from climate hazards such as floods, storms, heat waves and wildfires.
Mesurer l’impact financier des risques climatiques : l’EDHEC innove et lance Scientific Climate Ratings
(...) Issue des travaux de recherche de l’EDHEC Climate Institute, cette agence propose des notations prospectives évaluant comment les risques de transition (liés à la transition vers une économie bas carbone) et les risques physiques (dus aux aléas climatiques comme les inondations, tempêtes, vagues de chaleur ou incendies) affectent la valeur financière des actifs.
En 2025, ce sont ainsi plus de 6000 actifs et projets d’infrastructures dont les notes sont librement accessibles. En 2026, cette couverture s’étendra à plus de 5 000 grandes entreprises cotées à travers le monde. (...)
L’Edhec dévoile son agence de notation dédiée à l’impact financier des risques climatiques
(...) Scientific Climate Ratings, dirigé par Rémy Estran-Fraioli, repose sur les travaux de recherche de l’Edhec Climate Institute et attribue des notations prospectives. (...)
EDHEC Climate Institute sees 40% chance of +3°C by 2100
(...) EDHEC Climate Institute has published a study proposing a framework to assign probabilities to long-term climate outcomes, in response to what it sees as "a critical shortcoming in existing scenario analysis tools used in financial regulation and investment strategy".
EDHEC Climate Institute Introduces Probabilistic Climate Scenario Framework to Aid Financial Planning
(...) As climate change increasingly drives financial risk assessments and regulatory scrutiny, a persistent issue has remained unaddressed: the lack of probabilistic insight in climate scenario modeling. In response, the EDHEC Climate Institute has released a new study proposing a structured framework to quantify the likelihood of future climate outcomes—aiming to improve how financial institutions incorporate climate data into their risk models.
Investor commitment to climate risk mitigation steadfast as ESG plods on
(...) As climate risks become a core concern in financial and regulatory decision-making, one key challenge remains largely unsolved: the absence of probabilistic information in existing climate scenarios. To address this issue, the EDHEC Climate Institute has published a new study proposing a robust framework to assign probabilities to long-term climate outcomes. The research posits an approach to quantify the likelihood of different temperature trajectories, using real-world constraints and economic data. It complements existing scenario narratives by adding a probabilistic dimension, which is essential for effective asset pricing, stress testing, and strategic planning. (...)
(...) Flash floods in Spain, wildfires in California: mortgage-backed securities have never been more exposed to physical climate risk. Financial institutions are increasingly on the front lines, facing immediate consequences such as collateral devaluations, rising loan impairments, and mounting credit risk. Yet these episodes are soon forgotten: one news cycle chases the next, even as the financial scares persist. (...)
Les investisseurs peinent à intégrer le dérèglement climatique dans leurs calculs
(...) Nouveaux cheminements Pour surmonter ces obstacles, certains chercheurs explorent des moyens détournés afin de guider les investisseurs dans leurs allocations de long terme, surtout leurs poches actions. Car les titres de propriété ont une durée de vie théoriquement éternelle, et leur valorisation est traditionnellement extraite loin dans l’avenir via l’actualisation des flux de trésorerie. Près des trois quarts de la valeur d’une action proviennent de la valeur terminale, dont le calcul tout théorique est très dépendant
des hypothèses de croissance au-delà de 15-20 ans, sur un horizon infini.
Will the SBTi’s new net zero standard push companies to walk the talk?
(...) One such change is a separation of direct and indirect emissions reduction plans. In effect, this would mean ending the use of combined Scope targets by corporates – which the previous standard permits.
Frédéric Ducoulombier, climate regulation and policies programme director at the EDHEC Climate Institute says this is a step in the right direction.
“The proposed standard would end this practice — a quiet but significant structural shift. It closes a longstanding and under-appreciated weakness: the possibility to meet headline targets, such as combined Scope 1+2 targets, by offsetting a shortfall in one Scope with progress in another”, Ducoulombier told Net Zero Investor.
EDHEC: EU can lead climate transition financing by balancing ambition and practicality"(...) While climate finance often emphasizes transition risk, the critical importance of physical climate risk should be highlighted as it may have an even greater impact on financial markets, writes EDHEC Climate Institute. Research shows how physical damage impacts equity valuations under different policy and climate scenarios, revealing potential market mispricing. It underscores the need to better incorporate physical risks into financial models, as current valuations may miss their true economic effects. (...).
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Copyright:Finadium
| Finadium
The End" in Hollywood and LA?: The flames took everything from them. Now they trust no one."(...) It is estimated that the total cost of the fire exceeds $250 billion , more than 2.6 trillion kroner. – The economic losses after the fires in Los Angeles exceed previous records, points out Nicolas Schneider, senior researcher at the climate institute EDHEC. “With increasing climate change comes economic crises. It's happening here and now,” he warns. (...)"
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Copyright:VG - Verdens Gang
| VG - Verdens Gang
L’EDHEC Climate Institute publie une revue sur les défis des investisseurs face aux risques climatiques"(...) L’EDHEC Climate Institute annonce ce lundi 10 mars la première édition, en anglais, du supplément «Research Insights» en coopération avec Investment & Pensions Europe (IPE). Ce numéro passe en revue les défis des investisseurs face aux risques climatiques par le biais de la recherche interdisciplinaire, en s’appuyant sur son expertise en matière de finance climatique tout en intégrant de nouveaux domaines complémentaires afin de fournir des informations exploitables aux investisseurs institutionnels.(...)"
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Copyright:Citywire
| Citywire
Climate Risks"(...) Last year, a team of researchers from the EDHEC Climate Institute published a study on the impact of climate risks on stock market valuations. The study revealed that physical climate risks (including extreme weather events) do not currently have a significant impact on stock market valuations. This means that investors either do not believe that climate change will have a major impact on companies' performance, or they believe that measures aimed at reducing greenhouse gas emissions will be successful. (...)"
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Copyright:Dnevnik
| Dnevnik
10 Business Schools To Watch In 2025"(...) EDHEC doesn’t just teach and support entrepreneurship, they live it. In 2012, the school spun off a company from its EDHEC-Risk Institute, Scientific Beta, which provided faculty intellectual property to investors. Eight years later, the school sold it for €200 million. Like any nonprofit, EDHEC channeled the proceeds back to the school. This included opening the EDHEC-Risk Climate Impact Institute to focus on climate finance. (...)"
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Copyright:Times Higher Education
| Times Higher Education
L'Edhec lance son institut dédié à la recherche climatique"(...) L'Edhec Business School lance une nouvelle entité dédiée au climat, l'Edhec Climate Institute (ECI). Cette nouvelle entité vise à aider les investisseurs à mieux évaluer l’impact du dérèglement climatique sur leurs actifs. (...)"
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Copyright:L'Agefi
| L'Agefi
Extreme weather sees fund managers turn to green stocks"Periods of abnormally high temperatures spur fund managers to pick more green stocks, research has found. Climate Salience and the Demand for Green Stocks by Mutual Funds explored the impact of climate on investment decisions of asset managers around the world. Teodor Dyakov, told FT Adviser fund managers that experience periods of high abnormal temperatures tend to buy more green stocks that managers that do not experience them. He co-authored the study with Dominic O’Kane. (...)"
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Copyright:FT Adviser
| FT Adviser
Best books of 2024: EconomicRiccardo Rebonato’s recent book, "How to Think About Climate Change: Insights from Economics for the Perplexed but Open-minded Citizen", has been selected as one of the best economics books of the year by Martin Wolf in the Financial Times.
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Copyright:Financial Times
| Financial Times
Climate-related asset risks are getting physical"(...) In a recent paper, How Does Climate Risk Affect Global Equity Valuations? A Novel Approach, the EDHEC-Risk Climate Impact Institute notes that up until now, transition risk has received more attention than physical risk when assessing how climate risk can affect asset valuations. (...)"
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Copyright:Investment Magazine
| Investment Magazine
EDHEC-Risk Climate Impact Institute – Impact of climate change on global equity valuations"(...) Climate change is not merely an environmental challenge but also an economic threat to global financial stability. A recent report by the EDHEC-Risk Climate Impact Institute provides a comprehensive analysis of climate-related risks to global equity valuations, emphasizing the need for integrating these risks into financial decision-making processes. This research highlights the financial vulnerabilities that both investors and policymakers must address in the context of climate change.
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Copyright:Impact of climate change on global equity valuations" – NordESG
| Impact of climate change on global equity valuations" – NordESG
New mandatory climate disclosure laws critical for investors to navigate the climate transition"(...)"The new mandatory corporate climate reporting laws being introduced by the Australian government are a key step towards improving transparency and capital allocation in financial markets, in a context where investors have much to lose from climate change,” said Daniel Aguet, Deputy CEO and Index Director of Scientific Beta.
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Copyright:Adviser Voice
| Adviser Voice
Unmanaged Climate Risks Undercut AI’s Investment Thesis"(...)Addressing the risks of a potential climate change-induced crash of the economy on AI’s customer base is now a business imperative for the nation’s largest companies and their investors.
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Copyright:Forbes
| Forbes
Engagement actionnarial : la gestion d’actifs en quête de preuves"(...) « L’affirmation selon laquelle les preuves scientifiques favorisent de manière décisive l’engagement actionnarial par rapport à l’allocation du capital en tant que manière, pour les investisseurs, d’avoir un impact, ne peut être soutenue par un examen impartial des preuves théoriques et empiriques », tranche Frédéric Ducoulombier, directeur de l’Edhec-Risk Climate Impact Institute, qui reconnaît que ce déficit de preuves est en partie dû à une absence de données de qualité sur les engagements. (...)
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Copyright:Option Finance
| Option Finance
« Générations 2050 » : Emmanuel Métais nous explique le nouveau plan stratégique de l’Edhec"(...)Emmanuel Métais : L’axe finance fait toujours partie des grandes priorités de l’EDHEC et nous travaillons au déploiement d’une finance dite climatique avec nos centres de recherche. Le lancement de notre centre de recherche « for Net Positive Business » doit maintenant contribuer à la transformation radicale des entreprises, pour les accompagner dans la transition vers de nouveaux modèles dits « net positive », qui permettent de créer un impact positif sur l’économie et la société et pas simplement de réduire les externalités négatives. (...)
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Copyright:HEADway Advisory
| HEADway Advisory
Productores de carne de cerdo se enfrentan a rebajas de calificación por riesgos climáticos"Fitch Ratings descubrió que uno de cada cinco emisores corporativos calificados podría estar expuesto a riesgos de rebaja de calificación para 2035. (...)
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Copyright:Bloomberg Línea
| Bloomberg Línea
40% of global equity at risk from current pace of decarbonization, study says"If the current rate of decarbonization persists the downward correction in global equity valuation could be as severe as 40%, according to a paper published by French academic think tank EDHEC Risk Climate Impact Institute.
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Copyright:Pensions&Investments
| Pensions&Investments
EDHEC-Studie zu Auswirkungen von Klimarisiken auf Aktienbewertungen" Um Themen wie diese wissenschaftlich zu durchleuchten, haben die EDHEC Business School und Scientific Beta gemeinsam den Forschungslehrstuhl „Upgrading Climate Scenarios for Investment Management“ am EDHEC-Risk Climate Impact Institute gestiftet. Jetzt gibt es erste Ergebnisse. (...)
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Copyright:Institutional Money
| Institutional Money
Pork Producers Face Downgrades as Climate Risks Rise, Fitch Says" (...) Both S&P Global Ratings and Moody’s Ratings have made similar warnings on climate-linked bond downgrade risks in recent years, though these typically haven’t translated into action impacting the more-than $140 trillion market.
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Copyright:Bloomberg BNN
| Bloomberg BNN
Veille Environnement et Développement Durable du 29 août 2024" Des politiques climatiques " agressives " sont nécessaires pour préserver la valeur des actions ( Edhec-Risk Climate Impact Institute)
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Copyright:RSE Datanews
| RSE Datanews
How Should Companies Measure Carbon Risk Exposure?"When it comes to slashing carbon emissions and related risk, the onus is often placed on individuals to address their carbon footprint. But companies have a major role to play. In fact, the biggest corporations have accounted for more than two thirds of global emissions since(...)"
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Copyright:The Fashion Law
| The Fashion Law
Political Klimawandel: Schweiz hat bisher Glück im Unglück – diese Folgen drohen noch" (...)Der Klimawandel galt lange Zeit auch für die Börsen als Non-Event. So rechnete einer der weltweit grössten Fondsmanager stolz vor, auch eine Erderwärmung um 5 Grad bis 2080 bringe ihn nicht ins Schwitzen. Sein Aktienportfolio werde bloss um gerade einmal 4 Prozent an Wert verlieren.
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Copyright:diese Folgen drohen noch" – Watson
| diese Folgen drohen noch" – Watson
Es ist ein Sommer der Katastrophen, dennoch hat die Schweiz noch Glück – aus einem bestimmten Grund“Es ist ein Sommer der Katastrophen, dennoch hat die Schweiz noch Glück – aus einem bestimmten Grund"
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Copyright:Luzerner Zeitung
| Luzerner Zeitung
Political stagnation on climate risk means markets are doin’ it for themselves" (...)Recent research from the EDHEC-Risk Climate Impact Institution shows how valuation techniques using probabilistic modelling can estimate the effect on global equity values from climate and economic uncertainties, financial contingencies, transition costs and physical risks.
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Copyright:Finadium
| Finadium
Green bond, lo schema europeo sfida i titoli verdi tradizionali" (...) Icma è quindi l’attuale standard di mercato. C’è però una new entry europea. Da anni infatti Bruxelles sta lavorando alla normativa su un green bond Ue. Il risultato di tale lavoro è il regolamento 2023/2631 che introduce appunto l’European green bond (Eugb) e che sarà applicabile dal 21 dicembre di quest’anno. (...)
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Copyright:Il Sole 24 Ore
| Il Sole 24 Ore
Taking the Pareto Principle to the energy transition"More is needed to preserve equity value in the face of climate change, according to new EDHEC-Risk Climate Impact Institution research. to keep losses below 10 percent will require prompt and robust abatement action while over 40 percent of global equity value is at risk if decarbonisation efforts do not accelerate. One for the beach, perhaps. If it's not too hot."
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Copyright:Infrastructure Investor
| Infrastructure Investor
Is climate change a ticking time bomb for investors?"Climate change could be terrible for stock prices. That’s according to How Does Climate Risk Affect Global Equity Valuations?’, a new study by the EDHEC-Risk Climate Impact Institute. It estimates that if global warming is capped at 2 degrees, stock prices could decline less than 10 per cent. However, if close to no... (...)"
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Copyright:The Irish Times
| The Irish Times
Les risques climatiques pourraient dévaluer les actions mondiales de 40% selon une analyse de l’EDHEC"Un rapport de l'Institut EDHEC-Risk Climate Impact offre une analyse exhaustive des effets du risque climatique sur les évaluations boursières mondiales. Ce document révèle les conséquences potentiellement dévastatrices des coûts de transition et des dommages physiques causés par le changement climatique sur la valorisation des actions, en utilisant une méthodologie novatrice et rigoureuse. (...)"
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Copyright:Capital Insight
| Capital Insight
40% of global equity value at risk from climate inaction: study"(...) Without urgent climate action, global equity values face severe risks, with potential losses exceeding 50% due to climate tipping points, according to findings from the Edhec-Risk Climate Impact Institute. The study, conducted by Edhec, a business school and risk and investment management research centre, extended traditional valuation techniques to evaluate the impact of climate and economic uncertainties, financial contingencies, transition costs and physical risks on global equity values.(...)
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Copyright:Delano
| Delano
L’inaction climatique menace 40% de la valeur des actions mondiales"(...) Dans un communiqué de presse publié le 18 juillet, les chercheurs de l’Edhec ont présenté leurs principales conclusions, soulignant que l’impact du risque climatique sur la valeur des actions mondiales est particulièrement prononcé dans les scénarios où l’action en faveur du climat est limitée. Ils estiment que plus de 40% de la valeur des actions mondiales est menacée si les efforts de décarbonisation ne s’accélèrent pas, avec des pertes potentielles dépassant 50% lorsque les points de basculement climatiques sont pris en compte. À l’inverse, des mesures de réduction rapides et énergiques pourraient limiter les pertes à moins de 10%. (...)
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Copyright:Paperjam
| Paperjam
El próximo cisne negro del mercado será el cambio climático"(...) De acuerdo con un nuevo estudio de Instituto de Impacto Climático EDHEC-Risk, de no hacerse más detener el calentamiento global provocado per las emisiones de gases de efecto invernadero, las valoraciones de las acciones globales se verán afectadas en un 40%. (...)
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Copyright:Bloomberg Línea
| Bloomberg Línea
Global equity valuations are ‘not immune’ to climate risk"(...) The study – How Does Climate Risk Affect Global Equity Valuations? A Novel Approach – debunks the notion that the value of global equities is immune to climate changes. (...)
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Copyright:Portfolio Adviser future
| Portfolio Adviser future
Aggressive climate policies needed to preserve global equity values: EDHEC-Risk Climate Institution"A study from the EDHEC-Risk Climate Institution claims “aggressive climate policies are needed if global equity values are to be preserved”.
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Copyright:Institutional Asset Manager
| Institutional Asset Manager
EDHEC Climate Institute unveils ClimaTech: The science behind the hype in climate-alignment infrastructure technologies
Infrastructure investors and operators are under increasing pressure to identify credible, science-based pathways to decarbonisation and climate resilience. Yet most available information remains fragmented across technical reports, academic literature, and regulatory documents, leaving decision-makers without a single, comparable framework for action.
Scientific Climate Ratings: A New Standard in Climate Risk Assessment
As part of its Research for Impact strategy, EDHEC is announcing the launch of Scientific Climate Ratings as the first rating agency fully dedicated to quantifying the financial impact of climate risk.
Born out of research from the EDHEC Climate Institute, the agency offers forward-looking ratings that quantify how transition risks (linked to the shift toward a low-carbon economy) and physical risks (arising from climate hazards such as floods, storms, heatwaves, and wildfires) affect the financial value of assets.
In 2025, Climate ratings for more than 6,000 infrastructure assets are freely accessible. In 2026, the agency will extend its coverage to over 5,000 leading listed companies worldwide
40% Chance of Exceeding 3°C: EDHEC Study Assigns Probabilities to Climate Scenarios
A new study from the EDHEC Climate Institute proposes a model to assign probabilities to climate scenarios—addressing a long-standing limitation in the tools used by financial institutions, regulators, and policymakers to assess climate-related risks. The findings suggest a high chance (35–40%) that global temperatures will exceed 3°C by the end of this century.
Aggressive Climate Policies Needed to Preserve Global Equity Values, Warns New StudyIn a new study, How Does Climate Risk Affect Global Equity Valuations? A Novel Approach, EDHEC-Risk Climate Impact Institute addresses key limitations of current climate-aware valuation approaches to produce novel insights. The paper, conducted within the research chair established by EDHEC Business School and Scientific Beta, reveals that the impact of climate risk on global equity valuation can be significant, especially in scenarios with limited climate action.
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Scope for Divergence: Debunking Value Chain Emissions Myths and Addressing Scope 3 ChallengesEDHEC-Risk Climate Impact Institute today released “Scope for Divergence”, a policy report offering comprehensive insights into accounting for greenhouse gas emissions throughout companies’ value chains – and the challenges this poses to companies and investors.
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Don’t throw the DICE out with the consultants’ adviceUK Local Government Pension Scheme authorities have experimented with reporting on their governance and management of climate risks, responding to challenges by non-governmental organisations and anticipating regulatory developments. Drawing on advice provided by investment consultants, their reports have included simulations of the impact of climate-related scenarios on investments suggesting that portfolios would only be marginally impacted, even in high temperature scenarios.
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EDHEC and Scientific Beta establish climate-risk modelling research chairEDHEC-Risk Climate Impact Institute and Scientific Beta are pleased to announce the endowment of a research chair entitled “Upgrading Climate Scenarios for Investment Management”. This new long-term research effort is part of the EDHEC-Scientific Beta Advanced Climate Investing Initiative and aims to address the pressing need for fit-for-purpose tools to integrate climate risks into investment management.
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New EDHEC-Risk Climate paper applies natural language processing to extract climate change concerns from newsBoth climate change inaction and climate change action are expected to have an impact on the value of financial assets. It is therefore of interest to investors to quantify their exposure to climate change through the use of a climate beta, just as an exposure to market risk is measured by the traditional market beta. However, measuring the climate beta is difficult because it requires identifying a proxy variable that reflects changes in climate risk.
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EDHEC-Risk Climate Impact Institute comments on final European Sustainability Reporting StandardsEDHEC-Risk Climate Impact Institute welcomes preservation of the double materiality principle and broad coverage of Environmental, Social and Governance issues; regrets the European Commission’s decision to dispense with unconditional disclosure of key indicators of corporate sustainability; expresses concerns about the availability and quality of disclosures; and calls for industry efforts to standardise materiality assessments to reduce the cost and enhance the relevance of disclosures.
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New study shows that 10 SCPIs are enough to capture 88% of the benefits of diversificationIn a new publication “Benefits of Open Architecture and Multi-Management in Real Estate Markets— Evidence from French Nonlisted Investment Trusts”, EDHEC-Risk Institute, in partnership with Swiss Life Asset Managers France, assess whether modern investment management techniques such as fund selection and portfolio allocation can be applied to the SCPI universe and create value for an investor wishing to be exposed to French non-listed commercial real estate.
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New EDHEC-Risk Institute paper explores the impact of ESG factors on risk and return of sovereign bondsIn a new publication entitled “Measuring and Managing ESG Risks in Sovereign Bond Portfolios and Implications for Sovereign Debt Investing”, EDHEC-Risk Institute, with the support of Amundi ETF, Indexing & Smart Beta, develops a formal framework for incorporating environmental, social and governance (ESG) criteria into risk management and investment decisions involving sovereign bonds. The main objective is to assess whether it is possible to incorporate ESG constraints through a significant improvement of the portfolio ESG score without a substantial increase in absolute and relative risk budgets, or a substantial decrease in expected performance.
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EDHEC-Risk 2020 survey results show strong motivations for integrating ESG, whether in ETFs, or in smart beta and factor investing strategiesEDHEC-Risk Institute has announced the results of the 13th EDHEC European ETF, Smart Beta and Factor Investing Survey, a comprehensive survey of 191 European ETF and smart beta investors, conducted as part of its Amundi research chair on “ETF, Indexing and Smart Beta Investment Strategies”.
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Jaap van Dam, Principal Director of Investment Strategy at PGGM, appointed new chairman of EDHEC-Risk Institute’s international advisory boardEDHEC-Risk Institute is pleased to announce the appointment of Jaap van Dam as chairman of its international advisory board. He is the Principal Director of Investment Strategy at PGGM in the Netherlands. PGGM is a leading Dutch pension administrator with roots in the healthcare and social work sectors. It manages about €268 billion ($329 billion) in pension assets for more than 2.5 million Dutch participants. PGGM provides services in pension fund management, comprehensive asset management, management support, and policy advice to various pension funds.
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EDHEC-Risk Institute welcomes three distinguished new members to its international advisory boardEDHEC-Risk Institute is pleased to announce that three members have joined its international advisory board, which brings together distinguished scholars, representatives of regulatory bodies as well as senior executives from business partners and other leading institutions.
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EDHEC joins the Global Research Alliance for Sustainable Finance and Ivestment and reasserts its sustainable finance ambitionsEDHEC Business School is joining the Global Research Alliance for Sustainable Finance and Investment (GRASFI), the global network for cutting-edge research on sustainable finance and investment. The partnership underscores EDHEC’s commitment to this area, just a few weeks after presenting its new strategic plan – ‘Impact future generations 2025’ – and unveiling its strong ambitions in the sustainable finance field.
EDHEC-Risk introduces a comprehensive investment framework blending liability-driven investing and factor investingFactor investing and liability-driven investing are widely recognised as two major advances in asset-liability management. Interestingly, both paradigms are tightly connected with advances in research on portfolio optimisation and asset pricing. To explain what role factors can play in liability-driven investing is the purpose of a new EDHEC-Risk Institute publication entitled "Factor Investing in Liability-Driven and Goal-Based Investment Solutions", conducted as part of the "ETF, Indexing and Smart Beta Investment Strategies" research chair supported by Amundi. Specifically, the authors analyse the benefits of a factor investing approach at three stages: 1.
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EDHEC-Risk Institute aims to advance goal-based wealth management with an application to retirement investing, in collaboration with Bank of AmericaBuilding upon fundamental research on risk allocation and goal-based wealth management conducted in recent years, EDHEC-Risk Institute announced today that it is collaborating with Bank of America to develop new research on goal-based investing for the construction of retirement investment solutions for individuals. The aim of the research is to develop a holistic goal-based investing framework for analysing optimal retirement investment decisions for individuals in the transition or de-accumulation phase of their investment lifecycle, by using a broad range of investment product categories including stocks, bonds and annuity-related products.
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EDHEC-Risk Institute and FirstRand launch a research chair to design and implement welfare-improving investment solutions for institutions and individualsEDHEC-Risk Institute and FirstRand Limited (FirstRand or the group) are partnering for the first time to launch a three-year research chair entitled “Designing and Implementing Welfare-Improving Investment Solutions for Institutions and Individuals” to expand the scientific literature on investor welfare-enhancing methodologies for portfolio construction in a goals-based investing framework. Year 1 will focus on a detailed analysis of the interplay between diversification and insurance, with the aim of determining whether it is possible to achieve an improvement in investor welfare by creating a diversified portfolio of insured assets, as opposed to insuring a portfolio of diversified assets.
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EDHEC teams up with Coursera to launch MOOCs in machine-learning techniques for financial-sector professionalsEDHEC-Risk Institute, EDHEC Business School’s financial research hub, has teamed up with Coursera, a world leader in online training, to offer a new specialization in machine-learning techniques for financial professionals from September 2019. The online learning platform has 40 million registered users to date.
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The results of EDHEC-Risk’s annual European ETF and Smart Beta Survey show growing demand for SRI/Ethical ETFs and significant interest in fixed-income Smart Beta solutionsEDHEC-Risk Institute has announced the results of the 12th EDHEC European ETF, Smart Beta and Factor Investing Survey , conducted as part of its Amundi research chair on “ETF, Indexing and Smart Beta Investment Strategies”. This survey, conducted since 2006, aims to provide insights into European investors’ perceptions, practices and future plans in the domain of ETFs and Smart Beta.
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EDHEC-Risk Institute papers present a complete analysis of the two most popular fixed income factors: value and momentumA new study produced as part of the Amundi research chair on “ETF, Indexing and Smart Beta Investment Strategies” focuses on the two factors that explain a large fraction of differences over time in bond returns, namely the “level” or “slope” of the yield curve. Using not only yield curve data but also a comprehensive database of individual bond returns in the US over the 1973-2018 sample period, the publication “Factor Investing in Sovereign Bond Markets – A Time-Series Perspective”, explores whether it is possible to identify strategies, which, after transaction costs, generate excess returns by taking relevant signal-based level or slope bets when investing in a real US coupon bonds universe.
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Factor investing in fixed-income: EDHEC-Risk Institute paper shows that it is possible to build duration-timing strategies that are economically superior to bearing unconditional duration riskA new study produced as part of the Amundi research chair on “ETF, Indexing and Smart Beta Investment Strategies” focuses on the two factors that explain a large fraction of differences over time in bond returns, namely the “level” or “slope” of the yield curve. Using not only yield curve data but also a comprehensive database of individual bond returns in the US over the 1973-2018 sample period, the publication “Factor Investing in Sovereign Bond Markets – A Time-Series Perspective”, explores whether it is possible to identify strategies, which, after transaction costs, generate excess returns by taking relevant signal-based level or slope bets when investing in a real US coupon bonds universe..
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Swiss Life Asset Managers France and EDHEC-Risk set up a research chair to analyse the role of real estate in investment solutionsSwiss Life Asset Managers France and EDHEC-Risk Institute have announced the creation of a research chair at EDHEC-Risk Institute entitled “Real Estate in Modern Investment Solutions.” Led by Professor Lionel Martellini, Director of EDHEC-Risk Institute, and Professor Nikos Tessaromatis, Professor of Finance at EDHEC Business School, the research chair team will analyse the role of real estate in investment solutions. The goal is to provide a comprehensive analysis of the role of listed and unlisted real estate investments in institutional portfolios, with a particular emphasis on how dedicated forms of real estate investments can prove to be key ingredients within the performance and hedging components of welfare-improving forms of investment solutions.
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EDHEC-Risk’s annual European ETF and Smart Beta Survey results show growing demand for new developments in existing Smart Beta offeringsEDHEC-Risk Institute has announced the results of the 11th EDHEC European ETF and Smart Beta and Factor Investing Survey , conducted as part of the Amundi research chair at EDHEC-Risk Institute on “ETF, Indexing and Smart Beta Investment Strategies”. This survey, conducted since 2006, is aiming to provide insights into European investors’ perceptions, practices and future plans in the domain of ETFs and Smart Beta. This year, the survey also includes a special focus on Smart Beta product development, considering specific client demand in the fixed income field.
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Introducing the EDHEC-Princeton Retirement Goal-Based Investing Index Series – an answer to the retirement problemIn a new publication entitled “Applying Goal-Based Investing Principles to the Retirement Problem”, EDHEC-Risk Institute and Professor John Mulvey of the Operations Research & Financial Engineering Department at Princeton University outline the shortcomings of existing retirement products, and lay the academic foundations for a new generation of risk-controlled target date funds. The research efforts towards the design of more meaningful retirement solutions, with the support of Bank of America’s Merrill Lynch Global Wealth Management group, have led to the design of the EDHEC-Princeton Retirement Goal-Based Investing Index Series, available at risk.edhec.edu/indices-investment-solutions.
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EDHEC-Risk Institute provides an academic framework to maximise the benefits of factor investing for institutional investors”In a new publication entitled “Smart Beta and Beyond: Maximising the Benefits of Factor Investing”, EDHEC-Risk Institute, with the support of Amundi ETF, Indexing & Smart Beta, provides useful pedagogical clarification with respect to the benefits of factor investing in an institutional context. To this end, this paper proposes a “taxonomy” to classify the practically relevant notions of factors and discusses how they connect to various meaningful investment contexts.
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New EDHEC survey on equity factor investing calls risk techniques into questionIn a new survey conducted among investment professionals between June and September 2017, EDHEC-Risk Institute and ERI Scientific Beta have analysed the interests and motivations for investing in new forms of equity factor strategies. The 114 respondents together have at least USD 2.5 trillion in AUM and span all regions of the world (52% from Europe, 28% from North America and 20% from other parts of the world). In one of the more striking findings in the survey, there is a contradiction between score-based factor design choices and the statistical beta-based risk analysis. Analysis of the extreme risk of factor portfolios is still fairly basic and does not really allow the extreme risks to be appreciated.
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EDHEC-Risk Institute and AFG launch a digital outreach partnership on financial risk management as a source of performanceEDHEC-Risk Institute is pleased to announce the launch of a new digital outreach partnership entitled “Financial Risk Management as a Source of Performance” in partnership with The French Asset Management Association (Association Française de la Gestion Financière, AFG). This partnership will aim to emphasise the importance of financial risk management as a main source of added-value in asset management, and to showcase the expertise of French asset managers in this area through a series of digital outreach projects.
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EDHEC-Risk Institute welcomes five distinguished new members to its international advisory boardEDHEC-Risk Institute is pleased to announce that five members have joined its international advisory board, which brings together distinguished scholars, representatives of regulatory bodies as well as senior executives from business partners and other leading institutions: Ms Jayne Atkinson, Chief Investment Officer, Unilever UK Pension Fund; Mr Stéphane Monier, Head of Private Client Investments, Lombard Odier; Ms Lisa Shalett, Head of Investment and Portfolio Solutions, Morgan Stanley Wealth Management; Mr Brnic Van Wyk, Head of Asset/Liability Management, Investments Division, QSuper; and Mr Takashi Yamashita, Director, Investment Strategy, Government Pension Investment Fund (GPIF), Japan.
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Masterclass on New Frontiers in Retirement Investing MilanEDHEC Business School is proud to present a new international initiative offered jointly with SDA Bocconi School of Management: the Masterclass on New Frontiers in Retirement Investing. The workshop focuses on the topic of Retirement Investing, drawing on the latest academic research with practical relevance. The two pillars of the financial debate on retirement needs – funding and investments – are deeply analysed by experts from these two leading European Business Schools. The workshop will also include a roundtable discussion where regulators and investment managers will exchange their perspectives on the topic.
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EDHEC-Risk Institute suggests a new dynamic approach for measuring the market exposures of stock portfoliosMulti-factor models are standard tools for analysing the performance and the risk of equity portfolios. In addition to analysing the impact of common factors, equity portfolio managers are also interested in analysing the role of stock-specific attributes in explaining differences in risk and performance across assets and portfolios. In a new publication entitled “Multi-Dimensional Risk and Performance Analysis for Equity Portfolios”, EDHEC-Risk Institute explores a novel approach to address the challenge raised by the standard investment practice of treating attributes as factors, with respect to how to perform a consistent risk and performance analysis for equity portfolios across multiple dimensions that incorporate micro attributes.
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Mark Fawcett appointed new chairman of EDHEC-Risk Institute’s international advisory boardEDHEC-Risk Institute is pleased to announce the appointment of Mark Fawcett as chairman of its international advisory board. He is Chief Investment Officer of NEST Corporation, the trustee body responsible for running NEST, the National Employment Savings Trust. NEST was set up specifically to support changes that meant UK employers now have to automatically enrol their workers into a workplace pension scheme. Since its creation in 2011 NEST has become one of the largest master trusts in the UK and currently has over 200,000 employers signed up, 3.7 million members and over £1.2 billion assets under management.
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