Scientific Climate Ratings (an EDHEC venture) hosted a webinar organised by IPE Real Assets titled “Turning Climate Science into Financial Insights”, on August 28.
Co-hosts of the webinar, Rémy Estran-Fraioli, PhD, CEO, and Mariya Peykova, CESGA, Sales Director, presented how the agency is setting a new global benchmark in climate risk assessment by quantifying the financial materiality of climate risk.
The speakers addressed the underlying methodologies, and demonstrated how the forward-looking ratings help investors, corporates, and public institutions make better-informed decisions and drive climate-resilient investments.
Developed by the EDHEC Climate Institute, the ratings evaluate how both transition risks (from decarbonisation and policy shifts) and physical risks (from events like floods, heatwaves, and wildfires) affect asset value.
These tools provide investors and issuers with transparent, independent and standardised ratings, going beyond traditional approaches that overlook the financial impact of climate risk.
They combine high-resolution geospatial data, advanced climate models, and financial valuation methods to deliver two key metrics:
• Potential Climate Exposure Rating (PCER): Measures future exposure under a “continuity” policy scenario, rated from A (least exposed) to G (most exposed).
• Effective Climate Risk Rating (ECRR): Quantifies dollar impact (NAV-adjusted) under multiple climate scenarios through 2035 and 2050.
The webinar was moderated by Brendan Maton of IPE.
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