This Scientific Climate Ratings special issue of the EDHEC Research for Institutional Money Management supplement provides institutional investors with an academic research perspective on the most relevant issues in the industry today.

• We first look at the subject of turning climate science into financial insights. Institutional investors managing long-term portfolios need science-based climate ratings to assess the financial materiality of these risks and quantify the asset value at stake.
• We then present ClimaTech, a research-driven knowledge base on efficient climate risk reduction strategies.
• We examine Scope 3 or value chain emissions, the hidden financial risks beyond the balance sheet, which typically cover the largest share of businesses’ carbon footprints, even though their financial risks are widely overlooked and underreported.
• Finally, we assess wildfire risk in a changing climate. 2025 was marked by intense wildfire activity worldwide, damaging critical infrastructure assets. With climate change intensifying these risks, investors and policymakers require credible, forward-looking, standardized tools to assess them and inform resilient capital allocation strategies.

 

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