Misum/Mistra Financial Systems meets Harrison Hong

On May 18th Mistra Financial Systems and Swedish House of Finance invited Harrison Hong, Professor of Finance and Economics at Princeton University, to present his recent research on the ability of markets to price risks associated with climate change.

In connection with his appointment as honorary doctor at the Stockholm School of Economics, Harrison Hong, Professor of Finance and Economics at Princeton University, was invited to Swedish House of Finance to present his recent research on the ability of markets to price risks associated with climate change. His recent study concerns the links between drought, food company cash flows and their stock price performance. Key questions included:
Do markets price in climate risks brought on by climate change?
Do we need more disclosures of corporate exposures?
Do investors need to hedge climate risks?

Professor Hong’s was able to conclude that "No, markets do not efficiently price climate change risks". For more information, Harrison Hong’s paper can be found here.

After Professor Hong’s presentation Frédéric Samama, from the European asset manager Amundi, presented how Amundi tackles these kinds of challenges.