GlobeNewswire by notified

EDHECinfra Answers Stuart Kirk: Climate Risk Matters for Long-Term Investors


Press Release – June 1, 2022

EDHECinfra Answers Stuart Kirk: Climate Risk Matters for Long-Term Investors

EDHECinfra reacts to Stuart Kirk's remarks on climate change

In an open letter to Stuart Kirk, the now-suspended head of responsible investing at HSBC Asset Management, Noël Amenc, associate professor at EDHEC Business School and Frédéric Blanc-Brude, director of the EDHEC Infrastructure Institute, express their dismay at the lack of science behind Mr Kirk’s recent very public claim that “investors need not worry about climate change.” Telling hard truth to a difficult audience is one thing but spreading fake truths to sound clever is all hubris and no brain.

Not only did Mr Kirk rely on dubious statistical methods to make his point that the stock market keeps rising as bad climate news becomes more frequent, but he also shows a remarkable absence of understanding of finance and how markets work. Markets do not process information that they do not have, and climate models and scenarios are not yet telling us what we need to know to understand the impact of climate risk on asset prices. This is why investors are increasingly demanding access to non-financial data about climate risks.

Mr Kirk considered that climate risks will be realised in the long term and probably with a fairly limited average aggregate loss given the offsetting of climate gains and losses. So, for a bank like HSBC that has a short-term and well-diversified balance sheet, there is not real point in him spending time on a subject that has no large impact on this balance sheet. This analysis shows unfortunately that Mr Kirk has not understood the very essence of his mission. As the head of responsible investing at a preeminent asset management firm, Mr Kirk is in charge not of his own risks or of the bank's risks, but of the risks of his clients. HSBC AM’s clients are longer-term investors than HSBC, because they have long-term liabilities like pensions and life insurance. For them, robust liability-hedging is at the core of what asset management should be all about. This liability-hedging objective results notably in investments in real assets that are not easy to diversify and are therefore very strongly exposed to climate risk.

Meanwhile he proposes without due care that the consequences of climate change can be summarised in an aggregate and limited loss of GDP, thereby presenting a morally dubious equivalence between the enormous cost that is likely to be borne by some people and nations, and the benefits of winners, who in principle could adapt to the irreversible and chaotic disruption of the planet’s climatic system. Maybe he does not care that Africa, Asia, and Latin America will take a beating and lose many of the development gains they achieved in the past century. For Mr Kirk, 2050 could be the new 1850.

Responsible investors, beyond the losses incurred in their portfolio due to climate risk, also worry about the impact of their investments on the climate and their capacity to participate in an undisputed goal of limiting global warming, which is threatening our civilisation. They care not only about Miami, but also about Mexico, Bangladesh or Venice being under water.

Many journalists and even politicians have expressed concern about Mr Kirk's suspension by HSBC AM, arguing that free speech is important in the public debate. We sincerely believe that they are missing the point. Mr Kirk did not enter the debate as a journalist -- who should be free to make any kind of comments as long as they have solid sources -- but as a high-level representative of a company that, through him, wishes to take its share in serving investors who are concerned about investing responsibly. What could be more normal than suspending him from a function that he does not really wish to perform?

Consult a copy of the open letter to Stuart Kirk.

About EDHEC Infrastructure Institute:
EDHECinfra® is a venture of EDHEC Business School and a provider of indices and analytics for the infrastructure investment universe. Because the majority of infrastructure assets are not publicly traded, there has traditionally been a vast knowledge gap when it comes to gauging the prices of these assets and their evolution. We are closing that gap with analytics and calculated indexes that already cover 25 countries representing an investable universe of 7,000 companies. We are based in Singapore and London. Visit

EDHECinfra maintains the infraMetrics® platform: an online information system that gives access to key market indices including the infra300® and infra100® series. InfraMetrics also includes a wealth of valuation data and analytics, risk metrics, a fund strategy analysis tool providing robust performance quartiles for any segment, strategy or vintage, and peer group analyses allowing investors to compare themselves against comparable segments of the market.

To view this piece of content from, please give your consent at the top of this page.
To view this piece of content from, please give your consent at the top of this page.

About GlobeNewswire by notified

GlobeNewswire by notified
GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York

GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire by notified

Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire by notified

Millicom increases Tigo Panama ownership to 100%29.6.2022 23:36:16 CEST | Press release

Millicom increases Tigo Panamaownership to 100% Luxembourg, June 29, 2022 – Millicom closed today the previously-announced transaction to acquire the remaining 20% interest in Telecomunicaciones Digitales, S.A. (formerly known as Cable Onda S.A. or “Tigo Panama”) reflecting an exercise of the founders’ liquidity option as provided for in the Shareholders’ Agreement, which was entered into in 2018. As a result, Millicom now owns 100% of Tigo Panama, the leader in Panama’s telecommunications market. For further information, please contact: Press: Yocasta Valdez, Sr. Manager Digital Media & Communications Investors: Michel Morin, VP Investor Relations Sarah Inmon, Director Investor Relations About Millicom Millicom (NASDAQ U.S.: TIGO, Nasdaq Stockholm: TIGO_SDB) is a leading provider of fixed and mobile telecommunications services in Latin America. Through our TIGO® and Tigo Business® brands, we provide a wide range of digital services and product

Kalera Public Limited Company announces its share structure following the business combination with Agrico Acquisition Corp.29.6.2022 16:30:19 CEST | Press release

ORLANDO, Fla., June 29, 2022 (GLOBE NEWSWIRE) -- Kalera Public Limited Company ( “Kalera”) and Agrico Acquisition Corp. (“Agrico”) today announced the completion of their previously announced business combination. The combined company will retain the Kalera name and will commence trading ordinary shares (“Kalera Shares”) and warrants (“Kalera Warrants”) on Nasdaq under the new ticker symbols “KAL” and “KALWW”, respectively, on Wednesday, June 29, 2022. The business combination was approved at a special meeting of the shareholders of Kalera S.A. on June 28, 2022. Update on Share Structure Pursuant to the Sponsor Support Agreement entered into on January 30, 2022, upon the consummation of the business combination approximately 1.8 million shares (50%) of Agrico Class B common stock were first converted into Agrico Class A common stock on a one-for-one basis, then into Kalera Shares on a one-for-one basis. The remaining 50% of the Agrico Class B common stock was forfeited to Agrico. In co

Business School Graduates Enter White-Hot Job Market as Employers Signal Growth, Confidence in Their Credentials29.6.2022 16:00:00 CEST | Press release

MBA and business master’s degrees remain hot commodity despite recession fears and COVID challenges RESTON, Va., June 29, 2022 (GLOBE NEWSWIRE) -- The Graduate Management Admission Council (GMAC), a global association of leading graduate business schools, today released its annual hiring report, the GMAC Corporate Recruiters Survey – 2022 Summary Report. The report explores the state of employer demand for graduate business school talent (MBA and business master’s degree recipients) in the context of the COVID-19 pandemic and includes responses from nearly 1,000 corporate recruiters and staffing firms around the world. While rising inflation and the war in Ukraine were just at the onset during the time when the survey was conducted in February and March 2022, hiring projections of graduate management education (GME) graduates remain bullish this year, with 92 percent of corporate recruiters expecting to hire newly minted MBAs. Promisingly, 2 in 3 responding corporate recruiters describ

AGC Biologics Named Manufacturing Company of the year by American Business Awards29.6.2022 15:09:00 CEST | Press release

Global CDMO honored for Growth in Mammalian, Microbial and Cell and Gene Manufacturing capabilities at Seattle, Boulder and Longmont sites SEATTLE, June 29, 2022 (GLOBE NEWSWIRE) -- AGC Biologics, a leading global Biopharmaceutical Contract Development and Manufacturing Organization (CDMO), today announced it was named Company of the Year in the “Large - Manufacturing” category in the 20th Annual American Business Awards®. The American Business Awards are the U.S.A.’s premier business awards program. Nicknamed the Stevies for the Greek word meaning “crowned,” the awards were presented to winners at a gala ceremony at the Marriott Marquis Hotel in New York on Monday, June 13. More than 230 professionals worldwide participated in the judging process to select this year’s American Business Award winners. AGC Biologics has a global pharmaceutical manufacturing network with seven sites across three continents. Over the last two years, the company has expanded its capabilities and reach with

PGS ASA: Approval and publication of prospectus – Listing of shares and Subsequent Offering29.6.2022 15:01:52 CEST | Press release

29 June, 2022 NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA, JAPAN, HONG KONG, SOUTH AFRICA OR THE UNITED STATES, OR ANY OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF ANY OF THE SECURITIES DESCRIBED HEREIN. Reference is made to the previous stock exchange announcements by PGS ASA (“PGS” or the “Company”) regarding a successfully placed private placement (the "Private Placement") of new shares in the Company, raising gross proceeds of approximately NOK 800 million and a potential subsequent offering (the “Subsequent Offering) of up to 38,155,803 new shares at a subscription price of NOK 3.70, and the Company’s extraordinary general meeting’s approval of the same on 27 May 2022. The Private Placement consisted of one tranche of 74,200,000 new shares ("Tranche 1") and a second tranche of 142,016,216 new shares ("Tranche2"). T