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Credit Risks and Investment Taxonomies


Credit Risks and Investment Taxonomies is a forthcoming research paper by CCFI and funded by INSPIRE by ClimateWorks. The INSPIRE research network has provided funding to Imperial to develop a robust, quantitative framework to inform investors and policy makers about the forward looking risks to brown industries.  The aim of this research project is to understand the forward-looking risks associated with investments in “brown” industries in order to enabling better risk management.

This summary explains how this research is being developed including the actions to review existing approaches towards investment taxonomies, develop a quantitative model that generates empirical evidence of potential future impairments, build objective and measurable indicators, and to build a view of the potential future risks for anticipating the intensity of climate-related risks to investors.

We seek to advance discussions by focusing on adaptive financial capacity at the firm-level and generating a brown investment taxonomy for the European energy sector that can be utilised by investors, corporate managers, and government policymakers.