The EDHEC Climate Institute (ECI) is a research body that supports finance professionals and decision-makers in navigating the challenges of climate change through academic research and practical tools. It is affiliated with EDHEC Business School and focuses on translating climate science into actionable insights for investment strategy and financial decision-making. ECI’s work spans six key areas: Physical Risks, Transition Risks, Resilience & Transition Technologies, Climate Scenarios, Green Assets, and Climate Regulation & Policies.

Organisation behind the tool
The Institute is an initiative of EDHEC Business School, operating as a dedicated research centre that collaborates with academia, industry, and public stakeholders. ECI has also partnered with Climate Innov to develop applied tools, including wildfire risk prediction solutions.

What the tool does
ECI develops research and practical tools across its six programme areas. Key functions include: quantifying climate-related physical and transition risks for infrastructure, real estate, and listed equities; complementing existing benchmark climate scenarios with probabilistic and sector/regional granularity; assessing the financial impacts of the transition to a low-carbon economy (including Scope 3 emissions and consumer behaviour); examining climate regulation and policy norms; and developing approaches to green asset pricing. The Institute also produces sovereign climate risk ratings and AI-based wildfire risk tools.

Target audience
ECI primarily targets finance professionals, institutional investors, asset managers, and corporate decision-makers. Its outputs are also relevant to policymakers, regulators, infrastructure managers, and academic researchers working on climate-related financial risk.

Relevance to finance professionals
ECI provides tools and research directly applicable to: risk assessment of physical and transition climate risks across asset classes; ESG analysis, including Scope 3 emissions and green asset pricing; investment strategy, particularly regarding climate scenarios and long-term asset pricing impacts; and regulatory compliance, through independent analysis of evolving climate regulation and disclosure frameworks.