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Webinar Announcement: Analyzing Climate Risk Effects on Global Equity Valuations

Webinar Announcement: Analyzing Climate Risk Effects on Global Equity Valuations

Sustainable Investing

Analyzing Climate Risk Effects on Global Equity Valuations

Date: Tuesday, July 2nd, 2024
Time: 8pm SGT | 2pm CEST | 1pm BST | 8am EST

A highly anticipated webinar, “Assessing the Impact of Climate Risk on Global Equity Valuations,” is scheduled for Tuesday, July 2nd, 2024. This event will feature new research insights from the EDHEC-Risk Climate Impact Institute, in collaboration with Scientific Beta.

Event Details:

The webinar will delve into the inadequacies of traditional discounted cash flow models, which often overlook state dependence by using a uniform discount rate for all cash flows at a specific time. This approach falls short when valuing securities sensitive to climate risk, as demonstrated by the latest research from the EDHEC-Risk Climate Impact Institute.

Utilizing an advanced integrated climate-economics model, the research captures the uncertainties of the climate system, the effects of physical damages, and the impact of different discount rates under various emissions abatement policies. This comprehensive model provides a nuanced understanding of how climate risk can influence global equity valuations.

Key Insights:

  • The impact of climate risk on equity markets is significantly affected by the speed of emissions reduction, the specific timing of climate tipping points, and the ability of Central Banks to mitigate economic downturns through rate adjustments.
  • Even in scenarios without tipping points, failing to take action on emissions abatement can lead to a reduction in global equity valuations by over 40%.

Webinar Highlights:

  • Limitations of current climate-aware valuation models
  • Underestimation of physical risk impacts on equity valuations
  • Importance of state-dependent discounting
  • Key factors influencing the effect of climate change on global equity valuations
  • Implications of the current emissions reduction trajectory on equity values
  • The reliability of Central Banks’ interventions (‘Greenspan put’) for climate risk management
  • Investment management considerations in light of climate risks

Speakers:

  • Professor Riccardo Rebonato, Ph.D.
    • Scientific Director, EDHEC-Risk Climate Impact Institute

Moderator:

  • Felix Goltz, Ph.D.
    • Research Director, Scientific Beta

Participants can register for the webinar and will receive a recording of the session after the live event.

https://edhec-dbd.zoom.us/webinar/register/2017180905669/WN_a-OvVPlNSnWBr94e0qTnPA

For more information, please contact Maud Gauchon at +33 493 187 887 or maud.gauchon@climateimpactedhec.com.

Webinar Announcement: Analyzing Climate Risk Effects on Global Equity Valuations