Infrastructure is highly vulnerable to climate risk, as it involves “long-term” fixed-location assets that cannot be easily relocated. Physical risks, such as floods and fires, and transition risks associated with the shift to a low-carbon economy pose significant threats to infrastructure assets, including devaluation, poor investment choices, and exposure to potential regulatory shifts. Research by the EDHEC Infra & Private…
Ethical Marketing News, a leading UK based news resource for marketers, highlighted the launch of Scientific Climate Ratings (SCR), the first agency fully dedicated to quantifying the financial materiality of climate risk. The report featured the agency’s coverage that offers more than 6,000 infrastructure assets that are accessible for free, and its scientific tools leveraging high-resolution geospatial data, proprietary climate…
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.…
Scientific Climate Ratings (SCR) is built on a legacy of academic excellence, born out of decades of robust climate research from the EDHEC Climate Institute and EDHEC Infra & Private Assets Research Institute and leveraging successful EDHEC Business School ventures, including Scientific Infra & Private Assets (SIPA). Our ratings draw strength from this meticulous foundation, transforming climate science into decision-useful…
Can a single rating truly capture the complex financial impact of climate risk across diverse scenarios, time horizons, and asset types? At Scientific Climate Ratings (SCR), an EDHEC Venture, we firmly believe that the variability of climate impact across sectors, geographies, and assets requires a more robust and academically grounded approach. Our objective is to move beyond mere exposure scores…
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…