We have a broad research base on wide-ranging topics, such as corporate sustainability, adaptation and resilience to climate change and global environmental change, and environmental finance.
Asset Impairment & Stranded Assets
A major research stream of the centre considers how global environmental change and climate change impact corporate assets. Risks result from not only environmental challenges and its resource constraints (eg limits to fossil fuel extraction and carbon constraints) but also changing technology landscapes and social expectations.
Our research provides thought leadership on recognising impairment events and on estimating the risk that corporate assets, especially in the oil and gas sectors, may become so-called ‘stranded assets’ – that is, assets that become subject to unanticipated or premature write-downs due to the impacts of environmental change.
A second important stream of the centre considers which measures are most effective for stabilising and reducing environmental impacts. The European Union has long been among the leading regions in introducing an emissions trading scheme (ETS). Significant developments are now taking place in other regions. China, the world's biggest greenhouse gas (GHG) emitter, has implemented several pilot ETS schemes and recently announced the implementation of a national ETS. This could be a turning point in action on climate change and is a natural experiment for ongoing monitoring.
Our research examines the impacts of policy announcements to understand the value effects they have on the economy.
Adaptation & Resilience
A third major stream of the centre is the need for companies to adapt to and build resilience against environmental change. Adaptation and resilience will be particularly important in developing countries that have limited technical expertise and funding.
Our research focuses on understanding the costs and benefits of adaptation and assesses the adaptation and resilience of companies and industries in various sectors. Recently published studies focus on adaptation in the energy industry. As well as the implications of climate change for the sugarcane industry.
Uptake Of Clean Technology
Companies and industries now drive the transition to a low-carbon economy, especially those in markets with favourable institutional settings. Our research focuses on valuing business opportunities associated with clean technology for individual companies and the wider economy.
Our analysis suggests significant potential for the development of clean tech patents, particularly if their development and commercialisation pathways can be fostered through supporting carbon pricing policies, as well as country-level public research and development expenditure, and human capital. We estimate the total wealth created through developing clean tech patents range from US$10.16 to US$15.49 trillion dollars, with investment growth from US$2.93 to US$3.71 trillion.
Environmental, Social, Governance Investing
Environmental, Social and Governance (ESG) investing has flourished into a significant industry. The issues around ESG investing have therefore become an important focus for the investment community, academic researchers and financial regulators. Our contribution to this dynamic space has been in deciphering the thematic structures; investigating the key drivers behind ESG fund flows; and examining the influence of industry networks such as the United Nations’ Principles of Responsible Investing and the Forum for Sustainable and Responsible Investment.
Our research is wide ranging and reflects the diverse nature of Socially Responsible Investing (SRI) and its underlying motivations. Recent projects include: the robustness of ESG indicators; the relationship between ESG criteria and Sustainable Development Goals (SDG); and the benefits of ESG indicators in measuring the impact of climate change on company valuations.