Financial decisions worldwide are increasingly influenced by the scarcity of resources, and the physical and transition risks associated with climate change. The extent of the environmental impact from climate change is still uncertain but the recent scientific evidence is increasingly worrisome and many governments are taking decisive steps in order to avert a catastrophe.
The transition towards a low-carbon economy requires a broad array of financial instruments and innovations that will have far-reaching implications for markets, corporations, intermediaries, and investors.

Given the widespread recognition of climate change as perhaps the most fundamental long-term risks for asset managers and asset owners, EDHEC-Risk Institute is committed to launching a number of research and outreach initiatives to help explore a number of issues of strategic importance in climate change finance.

During this one-day conference which shall combine academic lectures and panel discussions, our experts will discuss several issues of increasing importance.
These topics shall include:

  • The landscape of climate finance
  • Which safe asset for climate risk?
  • Incorporating climate risk in equity factor investing strategies
  • Approaching climate risk from an asset owner perspective
  • Impact of climate risk in credit analysis
  • Insurance of climate risks
  • Advances in climate risk stress testing
  • Green monetary policies

PROGRAMME

8:00-8:30: Registrations, Morning Tea/Coffee

8:30-9:15: Introductory Speech: The Landscape of Climate Finance
Lionel Martellini, Professor of Finance, EDHEC Business School, and Director, EDHEC-Risk Institute
• Physical versus transition risks – The science, engineering, economics and finance of climate change
• Green investing versus investing in green – Taxonomy of climate finance from an asset owner perspective
• Doing well versus doing good – Existence of a climate risk premium in public equity and bond markets

9:15-10:00: Keynote address : The Sustainable Investing Proposition
Harrison Hong, John R. Eckel, Jr. Professor of Financial Economics, Columbia University

Morning Sessions: Investing in Climate Risk

10:00-10:45: Plenary Session: Which Safe Asset for Climate Risk?
Abraham Lioui, Professor of Finance, EDHEC Business School
• If climate related negative shocks have real effects, we may observe a flight to safety
• During hurricane periods, Gold stocks uniquely experience positive abnormal performance
• The safe asset convenience yield of Gold stocks, while substantial, is short lived

10:45-11:15: Morning Break

11:00-12:00 : Plenary Session: Incorporating Climate Risk in Equity Factor Investing Strategies
Erik Christiansen, ESG and low carbon Solutions Specialist, Scientific Beta
• Relevance of various metrics in relation to investor objectives; effects of leverage, derivatives and short sales
• Benefits of screening vs. optimisation approaches
• Performance of equity factor strategies with reduced exposure to transition risks

12:00-12:45: Plenary Panel: Approaching Climate Risk From an Asset Owner Perspective
Panellists:
Olivier Rousseau, Executive Director at Fonds de Réserve pour les Retraites – FRR (The French Pension Reserve Fund)
Andreas Stang, Head of ESG, PFA Pension
Jaap van Dam, Managing Director Investment Strategy, PGGM
Norway SWF (tbc)
Moderator: Frédéric Samama, Head of Responsible Investing, Amundi

12:45-14:00: Lunch

Afternoon Sessions: Measuring and Managing Climate Risk

14:00-14:45: Plenary Session: Impact of Climate Risk in Credit Analysis
Gianfranco Gianfrate, Professor of Finance, EDHEC Business School
• What extent exposure to climate risks affects the level of corporate credit risk?
• What metrics and techniques are available to investors and lenders to assess the implication of climate exposure of corporates?

14:45-15:30: Plenary Session: Advances in Climate Risk Stress Testing
Riccardo Rebonato, Professor of Finance, EDHEC Business School
• Integrated climate change assessments: their promises and their limitations
• The importance of feedback mechanisms: risk or uncertainty?
• Tools to explore non-base scenarios: Bayesian nets
• What this implies for climate change economics and finance

15:30-16:00: Afternoon Break

16:00-17:00: Plenary Panel: Measuring and Managing Climate Risk
Panellists:
Bernard de Longevialle, Global Head of Sustainable Finance at S&P Global Ratings
Laurent Chatelin, Managing Director, Marguerite Fund
Charlotte Gardes, Deputy Head of Unit, Sustainable Finance & ESG reporting, French Treasury
Clément Bourgey, Banque de France
Moderator: Jean-Michel Beacco, CEO, Institut Louis Bachelier 

17:00-17:15 Closing Speech

Lionel Martellini, Professor of Finance, EDHEC Business School, and Director, EDHEC-Risk Institute

17:15-18:15 Drinks Reception.

Lieu

Palais Brongniart 16 Place de la Bourse, Paris, 75002 France