Project description
Financial markets tackling climate change
Institutional investors such as asset managers, insurance companies, pension funds and sovereign wealth funds own more than 70 % of the shares of publicly traded companies. Therefore, they can play a significant role in encouraging these companies to intensify their efforts in combatting climate change. To achieve this, financial markets are expected to play a new role. The EU-funded FinanceCC project aims firstly to determine how financial markets can help investors shape their portfolio strategies to face climate change risk. Second, the project will identify how institutional investors can engage with companies to guide them in their transition towards renewable energy. Finally, the project will investigate how public policy shapes corporate behaviour through the actions of institutional investors.
Objective
Should firms maximize financial value without regard to any environmental and social damages? If not, how should shareholders convey their social and environmental preferences? And, how should investors form their portfolio strategies and engage with the companies they invest in to mitigate climate change and other externalities? These are new fundamental questions firms and investors are confronted with in the face of accelerating climate change, and the new role financial markets are expected to play in the fight against climate change. Another transformational development is the rise of institutional investors asset managers, insurance companies, pension funds, and sovereign wealth fundswho together own more than 70% of the shares of publicly traded companies. These institutional investors are de facto the critical actors to aggregate investor preferences and engage with companies on their behalf.
This research project is divided into two major themes: (A) to determine how financial markets provide the asset price signals and information to help investors shape their portfolio strategies in the face of climate change risk; (B) to identify how institutional investors approach climate change and engage with companies to lead them to accelerate the transition towards renewable energy. These two themes cannot be separated from public policy towards climate change, and the broader context of the global fight against climate change by governments, municipalities, regulators and civil society. Accordingly, a major aspect of the research is to make explicit how public policy shapes corporate behaviour through the actions of institutional investors.
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
-
H2020-EU.1.1. - EXCELLENT SCIENCE - European Research Council (ERC)
MAIN PROGRAMME
See all projects funded under this programme
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
ERC-ADG - Advanced Grant
See all projects funded under this funding scheme
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2019-ADG
See all projects funded under this callHost institution
Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
SW7 2AZ London
United Kingdom
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.