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…
Responsible Investor published an interview with Rémy Estran-Fraioli, CEO of Scientific Climate Ratings (SCR), highlighting the need for a systematic analysis of financial risks associated with climate change, and how SCR aims to break the mould when it comes to climate risk assessments for investors. In the interview, Rémy Estran-Fraioli outlined why traditional ESG ratings and climate “stress tests” fall…
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…
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…
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…
