A climate ratings firm created at French business university EDHEC has become the first to estimate projected financial losses for thousands of infrastructure assets under various climate change scenarios, its founder and
A climate ratings firm created at French business university EDHEC has become the first to estimate projected financial losses for thousands of infrastructure assets under various climate change scenarios, its founder and chief executive said.
Better understanding the potential costs of climate change is increasingly important as political pressures have led to rollbacks in environmental policies and climate change targets in some countries including the United States.
"We saw a critical disconnect. Climate risks are accelerating and at the same time, most financial decisions still overlook them or treat them as vague, non-financial concerns," Scientific Climate Ratings CEO Rémy Estran-Fraioli told Reuters.
Scientific Climate Ratings, majority owned by EDHEC and due to be spun out later this year, will initially cover around 6,000 assets before expanding early in 2026 to include more than 5,000 listed equities, he said.
While several companies have sought to assess a company's exposure to the physical risks of climate change, such as wildfires or floods, most assessments of the potential effect on infrastructure are high-level.
Getting to grips with the financial risk embedded in the system is important as trillions of dollars are invested in infrastructure such as ports, airports and utilities, which are vulnerable
Content Original Link:
" target="_blank">
