Infrastructure Investor published an interview with Rémy Estran-Fraioli, CEO of Scientific Climate Ratings, discussing the need for infrastructure investors and operators to assess climate risk through science-led ratings that prioritise financial materiality over policy targets, moving beyond generalist ESG ratings. Key insights from the interview: The ESG backlash is growing, particularly in the US, as corporates and investors are “tired…
In an interview published by Pensions & Investments (P&I), Rémy Estran-Fraioli, Chief Executive Officer of Scientific Climate Ratings (an EDHEC venture), outlined how his agency is redefining climate risk assessment for institutional investors. The interview, titled “A Scientific Approach to Quantifying Climate Risk”, highlighted how Scientific Climate Ratings delivers forward-looking, science-based ratings that translate complex climate data into expected monetary…
Climate scenarios are essential tools for assessing the financial impacts of climate risks and taking resilience measures. While they are not forecasts that can anticipate the future, these scenarios provide significant frameworks about plausible futures associated with climate change, facilitating risk management for financial decision-makers. They are widely used by various actors ranging from central banks to financial institutions and policymakers.…
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…