Loading presentation...
Prezi is an interactive zooming presentation

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Make your likes visible on Facebook?

Connect your Facebook account to Prezi and let your likes appear on your timeline.
You can change this under Settings & Account at any time.

No, thanks

ET RISK

No description
by

Stanislas Dupré

on 15 February 2016

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of ET RISK

Measuring Energy Transition (ET) Risk & Opportunity
Logic
1. Policy makers target limiting global warming to 2° C relative to pre-industrial levels
2. The 2° C climate objective translates into changes in policy, market, and additional non-conventional risk factors
3. These changes may lead to stranded assets.
4. Stranded assets are likely to impact the cash flow of companies. ET risk metrics will investors influence corporate investment decisions to respond to ET risk. This allows for a reduction in risk exposure.
5. A negative impact may create financial risk for financial assets.
6. This financial risk is filtered through to investors.
7. Financial institutions can then hedge ET risk through investor in sustainable energy companies


Background & Objectives
Framework
Management
Project plan
Project formally supported by the French Prime Minister's Office, the German Environment Ministry, 16 financial institutions (Axa, BNPP, Caisse de Depots, KLP, AP4 ERAFP, FRR, AP2, APG-AM, Boston Common Asset Management, Allianz, Calvert, Ohman, AFD), invest platforms representing over 300 other fnancalistitutions, and major NGOs and think tanks (UNEP, WWF, etc.)
Demand from
policy makers:
French ET law, Bank of England, German Ministry support letter, G20 / FSB initiative, UNEP Inquiry
Demand from
financial institutions
Decarbonization pledges, investment bank initiatives, public statements, shareholder resolutions
Objectives
1. Help investors & policy makers
understand
the materiality of ET risk and & opportunity
2. Help investors
assess
the materiality of ET risk and opportunity for equity and bond portfolios
3.
Engage
with investors & policy makers on responding to ET risk and opportunity
The project creates an ET risk assessment framework that responds to the objectives defined above. The framework involves the development of the ET risk concept, databases, and ET models for measuring net margins, and the impact on equity valuation and credit risk. The outputs can be adopted directly by market actors or used as toolkit for a do-it-yourself appoach
Horizon 2020 [EE-19]
Designing an Energy Transition Risk and Opportunity Assessment Framework
ET Risk:
Full transcript