As highlighted by Rémy Estran-Fraioli, CEO of Scientific Climate Ratings, infrastructure investors are increasingly seeking to understand the financial implications of climate adaptation and resilience measures as physical climate risks become more material for long-term asset performance and valuation. Scientific Climate Ratings, created by EDHEC Business School, develops tools designed to help investors integrate climate risk analysis into financial decision-making processes.

The organisation’s Climate Exposure Rating and Climate Risk Rating frameworks enable investors to assess both the exposure of assets to future climate hazards and the potential financial impacts of those risks within valuation models. Speaking at ChangeNOW in Paris, Estran-Fraioli outlined a structured approach for moving from a reactive to a proactive adaptation strategy, beginning with climate exposure assessment, quantification of the financial cost of inaction, identification of asset-specific adaptation measures, and ultimately investment decision-making based on economic trade-offs and risk appetite.

The discussion further emphasised that climate adaptation strategies must remain highly asset- and location-specific, with resilience measures evaluated in the context of both financial efficiency and long-term operational viability. With more than 6,000 infrastructure assets already rated, Scientific Climate Ratings’ methodologies are increasingly being used by investors to support climate due diligence, portfolio-level risk assessment, and more informed long-term investment decisions.

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