Climate scenario models often extend far into the future, typically to 2050 or even 2100, well beyond traditional financial planning horizons. As Mark Carney described in his now well-known speech, climate change presents a “tragedy of the horizon,” where short-term financial decision-making fails to account for long-term consequences. Climate risk is, therefore, highly uncertain, with widely varying outcomes. Most models…
From extreme weather to policy disruption, climate risks manifest in two distinct yet financially relevant forms: Physical and Transition. These risks are urgent and material, with significant financial impacts, especially for infrastructure projects with long investment horizons. At Scientific Climate Ratings (SCR), we assess both to provide a comprehensive view of climate-related exposure and quantify their financial impact. Below, we outline…
Climate risks are material financial risks. Yet, for years, the dominant response has been reactive: Responding to climate shocks as they happen and relying heavily on ESG reporting to demonstrate compliance. This checklist mindset is losing both relevance and credibility for investors and issuers, in the face of today’s complex climate realities. Scientific Climate Ratings (SCR), an EDHEC venture, offers…
Reuters news agency has published an exclusive article introducing Scientific Climate Ratings (SCR), an EDHEC venture, highlighting its distinctive position as the first agency to estimate projected financial losses for thousands of infrastructure assets across multiple climate change scenarios. The article authored by Simon Jessop, Editor of Sustainable Finance at Reuters, addressed the growing need to understand the potential costs…
Scientific Climate Ratings (SCR), an EDHEC venture, featured in an article by International Financial Review (IFR) magazine, promoting the agency’s powerful feature assigning a precise dollar value to the impact of climate risk on infrastructure. SCR offers forward-looking ratings that quantify how transition risks (linked to the shift to a low carbon economy) and physical risks (floods, storms, heatwaves…
