National Pension Hub Publications
Computing & Ranking Emissions Risk (Carbon Beta) for Long-Term Assets
The research will allow for, foremost, identification of assets with long-term pay-offs. This will be followed by computing carbon betas for the identified long-term investments and assets. The availability of such data will benefit the financial community as a whole but Pension Funds in particular. Since environmental risks and pay-offs are often exhibited in the long-term, risk and return considerations need to be undertaken now, especially for new portfolios being built. Once the research is conducted, the Pension Funds will be able to identify and compute climate-related risk and value their portfolios accordingly. Secondly, the insurance industry which is currently being faced with high pay-outs associated with climate change related impacts, will benefit greatly, correctly being able to value their risks and price their products accordingly. The investment advisors will be able to fulfil their fiduciary duty of sharing the imminent risks associated with the investment portfolio, particularly long-term investments such as retirement savings, stemming from long-term climate change related risks. Investors and the financial sector in general, will also be better able to understand the implications of their investments particularly the long-term risks, and in turn make better investment decisions
Smith School of Business, Queen’s University
Ryan Riordan is the Associate Professor & Distinguished Professor of Finance at Smith School of Business, Queen’s University. He is the Director of Research of the newly-established Institute for Sustainable Finance based at Smith. Prior to joining Smith, Ryan was an Assistant Professor of Finance at the University of Ontario Institute of Technology (UOIT) and an Assistant Professor at the Karlsruhe Institute of Technology in Germany. His work has won awards such as the Michael J. Brennan Award for the best paper published in the Review of Financial Studies, and the Philip Brown Prize for the best paper published using Sirca data. In 2015 Ryan was awarded a SSHRC grant and the Smith School of Business New Researcher and Research Excellence Awards. He has also worked extensively within the financial industry, with regulators, policy makers, and central banks. His work has been published in the Journal of Financial Economics, Review of Financial Studies, and the Journal of Financial Markets among many others.