Advancing Climate Risk Research, Tools, and Portfolio Strategies: Discover the fifth edition of EDHEC’s Climate Finance Highlights (August/September2025)
Delve into groundbreaking research and insightful discussions from our researchers on climate finance and, if you haven't already done so, do not hesitate to subscribe to this quarterly newsletter.
Driven by our institutes and initiatives, including the EDHEC Climate Institute, Scientific Climate Ratings and Scientific Portfolio - an EDHEC Venture, this newsletter brings you the latest climate finance cutting-edge research and practical applications.
This quarter, we spotlight the launch of Scientific Climate Ratings (SCR), an EDHEC Venture and the first European agency dedicated to assessing the financial materiality of climate risks. Developed from EDHEC Climate Institute (ECI) research, SCR combines climate science, geospatial analytics, and financial modelling to set a new standard in climate risk assessment. We analyse the underestimated economic costs of climate change, introduce a novel probabilistic framework for scenario modelling, and share findings from the ClimaTech project on infrastructure resilience strategies. This issue also features a study on the ethical foundations of climate alignment in portfolios, new open-access tools to explore climate and economic risks, and insights into portfolio management approaches for navigating climate transition risks..
Latest Insights
Rémy Estran-Fraioli - Scientific Climate Ratings (an EDHEC Venture): “After months of preparation, at a crucial time, we are embarking on an intense journey with knowledge and tools that are unique in the sector"
In this interview, Rémy Estran-Fraioli, CEO of the new EDHEC’s venture - the first rating agency fully dedicated to quantifying the financial impact of climate risk - discusses the origins of the project, its mission and its ambitions. Developed through research from the EDHEC Climate Institute, SCR is the first initiative of its kind to combine climate science, geospatial data, and financial valuation models in a structured public rating framework. Initially covering more than 6,000 infrastructure assets, SCR provides forward-looking ratings designed to inform investment, regulatory, and policy decisions. In 2026, its coverage is expected to extend to 5,000 of the world’s largest listed companies… Read this interview
The (significantly) underestimated financial costs of climate change
In this article, Riccardo Rebonato, EDHEC Professor and EDHEC Climate Institute (ECI) Research Director and Senior Advisor, looks back on an innovative paper, co authored with Dherminder Kainth and Lionel Melin (ECI), in which they assess how the value of global equities can be significantly affected by both physical climate damage and transition costs. Losses in the value of global stocks could top 40% if no action is taken to bring climate change under control. In the presence of climate tipping points, this range widens from less than 10% for strong abatement to more than 50% in the case of very low emission abatement… Read this article
Recalibrating climate risks: how to assign probabilities to climate scenarios
EDHEC Climate Institute's latest white paper proposes a probabilistic framework to address the missing likelihoods in climate scenarios used for risk management and asset valuation. Using a dataset of 5,905 SCC estimates, it applies both expert-informed and maximum-entropy approaches. Results show a 35-40% chance of exceeding 3°C by 2100, stressing urgent policy alignment to avoid severe climate risks… Read this article
Latest news
EDHEC Climate Institute Unveils Open-Access Tools to Explore Climate and Economic Risks
The EDHEC Climate Institute has unveiled two new open-access, interactive visualisations designed to combine scientific rigour with accessibility. These tools allow researchers, policymakers, financial professionals, educators, and the wider public to explore how different greenhouse gas emissions pathways could shape future climate outcomes and their economic impacts... Read this news
From Greenwashing to Measurable Impact: Highlights from the ClimaTech Webinar
As infrastructure investors face increasing pressure to address climate risks, many still struggle to identify which strategies are truly effective. In a webinar hosted by IPE and led by the EDHEC Climate Institute, experts introduced ClimaTech — a science-based tool designed to help stakeholders go beyond greenwashing and make climate risk assessment more systematic, measurable, and actionable. This article outlines the key takeaways from the session... Read this news
EDHEC Co-Hosted Adaptation Days 2025 with EIB and European Commission During UN Ocean Conference
The EC-EIB Adaptation Days 2025 has successfully wrapped up for two days of in-depth discussions on coastal resilience and climate adaptation finance. The event brought together policymakers, climate experts, public officials, and financial institutions, and was organised by the European Commission and the European Investment Bank (EIB). Now in its second year, Adaptation Days 2025 was held under the auspices of the UN Ocean Conference (UNOC3) in partnership with EDHEC Business School and the EDHEC Climate Institute. Through a combination of high-level ministerial dialogues and expert-led technical sessions, the programme facilitated cross-sectoral exchange, stakeholder engagement, and the identification of actionable strategies to strengthen adaptation planning and investment... Read this news
Discover the fourth edition of EDHEC’s Climate Finance Highlights (April 2025)
This quarter, we highlight EDHEC’s contribution to the UN Oceans Conference through the co-organisation of the EC–EIB Adaptation Days, a high-level event on financing coastal resilience. Alongside this, the EDHEC Climate Institute is launched as a new interdisciplinary hub for climate research and action, bringing together expertise in finance, spatial data, AI, and regulation. Our researchers examine the systemic climate challenges facing agriculture, the underestimated financial costs of climate policy uncertainty, and the role of European leadership in global climate governance. We also present new studies on how transition risks affect equity portfolios, and how climate salience influences fund managers’ decisions worldwide... Read this news
Further information
- To read this #5 newsletter online, follow this link: https://docs.climateimpactedhec.com/highlights_aug25/content-082025.html
- To subscribe to this quarterly newsletter: please contact [email protected]
- To discover the section dedicated to EDHEC's Climate Finance Research, click here: https://www.edhec.edu/en/research-and-faculty/edhec-climate-finance-research
