Climate and Sustainability Disclosures
The theme covers issues related to Climate and Sustainability Disclosures. A major project in this area is the effectiveness evaluation of the Aotearoa New Zealand’s Climate-related Disclosure framework. This has included work on the VW emissions scandal and the value relevance of greenhouse gas emissions disclosures [see Publications]. CEFGroup are conducting a project on climate activist shareholder resolutions with colleagues at UC Davis and the University of Seville. This work also includes using machine leaning techniques to predict and forecast corporate carbon emission with EMMI [see Projects]
This theme is looking at various topics around sustainable/responsible investing and the effects on investment performance, risk and perception. Current projects in this theme are exploring various topics including stated vs actual fund ESG performance (alongside industry partners, see Projects page), climate risks in Australian equities, ESG factors and bond returns, ownership networks and stranded asset impacts of potential emissions from fossil fuel reserves (in collaboration with academics from the University of Waterloo and Banque de France, see Projects page) and ESG performance in derivative markets. Some completed projects have explored the effect of major climate policy events on oil and gas share prices, climate risks in NZ equities, performance of green vs brown IPOs (with colleagues at the University of Edinburgh).
Carbon, Energy & Electricity Markets
This theme covers the examination of the functioning of electricity, carbon and energy markets. Both physical commodities, such as oil markets, and derivatives, such as electricity hedging markets, have been examined in this theme. CEFGroup past work on carbon markets and in particular on New Zealand Emissions Trading Scheme (NZ ETS) has established the group as leading experts on the NZ ETS. Further, past and ongoing has been done on electricity markets with our partner Energy Link Ltd [see Publications]. Another stream of work in this theme is the financing of renewables and energy transition, with a focus on Australasia and Asia. Projects with Asian Development Bank Institute support have included examinations of green energy finance in Australasia and energy transition and energy policy in the ASEAN region.
Stranded Assets Risk: Physical Climate Risk
This theme explores how climate change-related flooding hazards (CCRFH) are going to affect property values in New Zealand. The modelling strategy contains both empirical analyses and forward modelling projections. The forward modelling uses Geographical Information System (GIS), weather data, IPCC scenarios of sea level rise to the end of the 21st century, and models of geology, to identify the properties that will be at risk. [See STRAND Marsden Fund Project]
Macro-Financial and Financial Institutions
This theme has two elements. The first explores the climate change, macroeconomic and financial stability nexus. The second part of this theme takes a micro view of risks posed by climate change on financial institutions. Specifically this has focused on climate transition risk in US banks and physical climate risk to micro-finance institutions.
