An article discussing the increasing impact of natural disasters on insurance and infrastructure investors, particularly on the latter who face challenges in accurately assessing climate risks and lack adequate tools for risk valuation, refers to research from EDHEC Infrastructure and Private Assets Research Institute published earlier in the year, entitled “Physical climate risk survey: those in the infrastructure investment industry are concerned and lack data“:

“In a January report from the EDHEC Infrastructure and Private Assets Research Institute, part of the EDHEC Business School, with campuses in France and several other countries, based on a survey of 70 investment industry professionals, approximately 76% said that scenarios used by financial institutions to evaluate climate risks to infrastructure assets are inadequate.

Furthermore, most investors do not know how climate risks could affect unlisted infrastructure assets, with only 16% of respondents saying they have the tools to accurately gauge the effect of climate risk on the asset class. Among surveyed investors, 97% said that physical climate risk is something they do consider significant for the infrastructure asset class.”

Read the full article here.

Find out more about quantifying the climate risks of infrastructure investments here.