About

The ET Risk Project

The Energy Transition Risks & Opportunities (ET Risk) research consortium seeks to provide research and tools to assess the financial risks and opportunities associated with the transition to a low-carbon economy

 

The objective of the ET Risk project is threefold:

  1. Help investors and policymakers understand the materiality of energy transition risk
  2. Help investors assess the materiality of energy transition risk for equity and bond portfolios
  3. Engage with investors and policymakers on responding to Energy Transition risk and mobilizing capital for sustainable energy investments.

 

To achieve these objectives the project’s Transition risk toolbox aims to provide analysts, investors and policymakers with the scenarios, asset-level data and/or models needed to assess transition risk exposure.

Partners

The 2° Investing Initiative (2ii) is the leading global think tank on integrating climate and long-term policy goals into financial markets. Since its founding in 2012, 2°ii has launched initiatives in Paris, Berlin, and New York City, with a satellite office in London. 2ii is a multi-stakeholder, non-commercial, membership-based initiative Its work focuses on developing indicators measuring the alignment of financial portfolios and assets with climate goals, as well as associated potential financial and economic risk, addressing the barriers to integrating these metrics into investment decisions (e.g. short-termism), and addressing the role financial regulation and supervision in creating barriers and incentives around aligning financial markets and portfolios with climate and long-term policy goals. 2ii has about 100 members in 15 countries, including financial institutions, governmental organisations, research centres, environmental NGOs, data-providers and individuals.

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Carbon Tracker Initiative is a non-profit think tank which provides in-depth analysis on the impact of climate change on capital markets and investment in fossil fuels, mapping risk, opportunity and the route to a low carbon future. CTI aims at enabling a climate secure global energy market by aligning capital market actions with climate reality.

CTI’s work covers three areas:

  • Research and Analysis, developing analysis of the financial implications of the energy transition
  • Regulatory Transparency, to improve financial regulation and disclosure of transition risk
  • Communications and Engagement, to take the analysis into the financial community

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I4CE – Institute for Climate Economics is an initiative of Caisse des Dépôts and Agence Française de Développement. The think tank provides independent expertise and analysis on economic issues linked to climate & energy policies in France and throughout the world.

I4CE aims at helping public and private decision-makers to improve the way in which they understand, anticipate, and encourage the use of economic and financial resources to promote the transition to a low-carbon resilient economy. I4CE works with a large and established network of partners.

We focus on three research areas, addressing the issues faced by actors involved in the energy and climate transition:

  • Industry, Energy and Climate: understanding policies for the low-carbon transition in the industry and energy sectors
  • Territories and Climate: identifying and analyzing courses of action in the fight against climate change in the agriculture and forestry sectors as well as urban areas.
  • Finance, Investment and Climate:  highlighting and analysing the mainstreaming of climate change into financial decision-making by public and private entities

I4CE aims at helping public and private decision-makers to improve the way in which they understand, anticipate, and encourage the use of economic and financial resources to promote the transition to a low-carbon resilient economy. I4CE works with a large and established network of partners

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Kepler Cheuvreux is a leading independent European financial services company specialized in advisory services and intermediation to the investment management industry. Founded in Paris in July 1997 as the equity brokerage business of Bank Julius Baer, the Swiss private bank, Kepler Cheuvreux has diversified its business model along the following lines: equities, debt & credit, investment solutions, and corporate finance.

The foundation of the business is the Research product which is leveraged across all four business lines. Many of the original founders of Kepler are still in place and, during the course of various changes of ownership, they have helped to define the key Kepler characteristics: Independent, Research-focused, Entrepreneurial, Tailor-made solutions and open to Partnerships & Strategic Alliances. KeplerCheuvreux’s industry leading ESG team integrates environmental social and governance research across the firm’s offering.

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At S&P Global Market Intelligence, we know that not all information is important—some of it is vital. Accurate, deep and insightful. We integrate financial and industry data, research and news into tools that help track performance, generate alpha, identify investment ideas, understand competitive and industry dynamics, perform valuation and assess credit risk. Investment professionals, government agencies, corporations and universities globally can gain the intelligence essential to making business and financial decisions with conviction.

S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies and governments to make decisions with confidence.

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S&P Global Ratings is the world’s leading provider of independent credit ratings. Our ratings are essential to driving growth, providing transparency and helping educate market participants so they can make decisions with confidence. We have more than 1 million credit ratings outstanding on government, corporate, financial sector and structured finance entities and securities. We offer an independent view of the market built on a unique combination of broad perspective and local insight. We provide our opinions and research about relative credit risk; market participants gain independent information to help support the growth of transparent, liquid debt markets worldwide.

S&P Global Ratings is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies and governments to make decisions with confidence.

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S&P Dow Jones Indices S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than based on any other provider in the world. With over 1,000,000 indices and more than 120 years of experience constructing innovative and transparent solutions, S&P Dow Jones Indices defines the way investors measure and trade the markets.

S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence.

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The CO-Firm GmbH is a boutique consultancy and modelling expert specialized in climate- and energy-related risk an opportunity analyses for industry, utilities, buildings, and the financial sector. With its ClimateXcellence Toolset, it has first developed systematic, scenario-based assessments of climate transition risks across a range of industries, with partners such as Allianz Climate Solutions, Allianz Global Investors, the Investment Leaders Group hosted by the Cambridge Institute for Sustainability Leadership, and WWF Germany.

The CO-Firm’s team combines technical, economic, and management consulting expertise to support its clients in identifying, evaluating and realizing their specific economic risks and opportunities in energy and climate action, and in building and implementing appropriate strategies and plans. These can serve to respond to the Task Force on Climate-related Financial Disclosures’ recommendations, the French Art. 173 requirements, to develop Science Based Targets, and build new business segment strategies.

The CO-Firm’s modelling builds on a range of scenarios, proprietary and third party databases of more than 200.000 physical assets and more than 15.000 different technical mitigation measures.

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The Sustainable Finance Programme at the University of Oxford Smith School of Enterprise and the Environment aims to be the world’s leading centre for research and teaching on sustainable finance and investment. The Programme was established in 2012 to understand the requirements, challenges, and opportunities associated with a reallocation of capital towards investments aligned with global environmental sustainability.

We research environment-related risk and opportunity across different sectors, geographies, and asset classes; how such factors are emerging and how they positively or negatively affect asset values; how such factors might be interrelated or correlated; their materiality (in terms of scale, impact, timing, and likelihood); who will be affected; and what affected groups can do to pre-emptively manage risk. We have conducted pioneering research on stranded assets and remain the only academic institution conducting work in a significant and coordinated way on the topic.

The production of high-quality research on the materiality of environment-related factors is a necessary, though insufficient, condition for these factors to be successfully integrated into decision-making. Consequently, we develop the data, analytics, frameworks, and models required to enable the integration of this information. We have particular expertise in asset-level data, spatial analysis, scenarios, and stress tests, and also focus on how information is presented and used.

We also research barriers to the adoption of practices related to sustainable finance and investment. This includes the role of policy, regulation, governance, incentives, behaviours, and norms in shaping investment decisions and capital allocation.

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