Climate sensitive valuation and asset (re)pricing
We develop models to incorporate forward-looking climate-sensitive information into valuation and pricing approaches for different risk exposures and asset classes. In collaboration with market participants, we explore the application of valuation tools to different asset portfolios. Sensitivity of valuations to certain physical and transition risks is estimated to the downscaling technology is used for climate-sensitive valuation across different sectors and asset classes in collaboration with leading financial institutions.
Climate risk scenarios for asset allocation and stress testing.
This strand of work focuses on the customization of climate risk scenarios and climate stress tests for different economies subject to various emission targets, net-zero pathways and economic/technological constraints. Bespoke climate risk scenarios are used for strategic asset allocation and climate stress tests. We benefit from collaborations with leading global financial institutions.