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. (...)