Scientific Beta

On 2 July, 2024, Felix Goltz, PhD, Research Director at Scientific Beta, will be moderating a webinar on the theme "Assessing the Impact of Climate Risk on Global Equity Valuations", as part of the EDHEC-Scientific Beta "Upgrading Climate Scenarios for Investment Management" Research Chair.

On 2 July, 2024, Felix Goltz, PhD, Research Director at Scientific Beta, will be moderating a webinar on the theme "Assessing the Impact of Climate Risk on Global Equity Valuations", as part of the EDHEC-Scientific Beta "Upgrading Climate Scenarios for Investment Management" Research Chair.

During the webinar, Professor Riccardo Rebonato, PhD, Scientific Director of EDHEC-Risk Climate Impact Institute, will provide insights from the forthcoming paper titled "The Impact of Physical Climate Risk on Global Equity Valuations," and discuss investor implications with the audience.

New research by EDHEC-Risk Climate Impact Institute, with support from Scientific Beta, shows that traditional discounted cash flow models which often disregard state dependence by applying the same discount rate/factor to all cash flows occurring at a given date cannot effectively value climate-sensitive securities and are not fit for purpose. Instead, using an upgraded integrated climate-economics model enables uncertainties in the climate system, physical damages, and discount rates under various emissions abatement policies to be captured, and the resulting impact on global equity valuations to be assessed.