EDHEC Business School announced the creation of Scientific Climate Ratings (SCR), the first European rating agency dedicated to assessing the financial materiality of climate-related risks. Developed through research from the EDHEC Climate Institute, SCR is the first initiative of its kind to combine climate science, geospatial data, and financial valuation models in a structured public rating framework.
Initially covering more than 6,000 infrastructure assets, SCR provides forward-looking ratings designed to inform investment, regulatory, and policy decisions. In 2026, its coverage is expected to extend to 5,000 of the world’s largest listed companies.
SCR offers two distinct but complementary outputs:
- Potential Climate Exposure Rating (PCER), assessing the degree of exposure to future climate risk under a “continuity” scenario — a projection based on current global policies and emissions trends. PCER uses a transparent A–G rating scale.
- Effective Climate Risk Rating (ECRR), estimating the financial impact of climate risks in Net Asset Value (NAV) terms, through both 2035 and 2050, using multiple scenario pathways weighted by probability. These are also rated on an A–G scale.
The methodology adjusts for asset or company-specific adaptation measures using insights from the ClimaTech database, a research asset developed by the EDHEC Climate Institute. The database includes standardized decarbonization and resilience strategies along with their documented impacts on emissions and physical damage.