This PRIN 2022 project develops an innovative framework based on geolocated data to analyze climate risks and their interconnections with markets and policies. It offers concrete tools to guide sustainable investment and public decision-making.
A new approach to understanding and managing climate risks while supporting effective policies for sustainable investment: this was the objective of the recently concluded PRIN 2022-funded project, “A geo-localised data framework for managing climate risks and designing policies to support sustainable investment”.
The project introduces an innovative transdisciplinary framework which integrates geolocated data, advanced statistical and complex systems methods to analyze the interconnections between economic activities, financial systems and environmental variables. This approach offers an integrated view of the dynamics linking sustainability, markets, and economic policies.
Led by Professor Alessandro Spelta of the University of Pavia, the project involved the Politecnico di Milano, the Università Cattolica del Sacro Cuore, and the University of Palermo. Specifically, the research unit at the Politecnico di Milano, led by Professor Andrea Flori of the Department of Management Engineering, examined the environmental performance of companies subject to the European Union Emissions Trading Scheme (EU ETS), analyzing the relationships between carbon emission dynamics, financial markets and policy mix.
The research highlighted how environmental policiesinfluence investor behaviour and market dynamics. In this context, these studies identified and quantified specific biases in emissions trading, providing valuable insights for assessing the effectiveness of the policy framework.
Alongside these findings, the project addressed the socio-economic dimension of climate risk by developing quantitative tools to inform investment decisions and public policies within a framework for sustainable transition. Specifically, the proposed multidimensional and geographically detailed approach enables the analysis of policy impacts and climate-related risks.The ultimate goal is to provide public decision-makers, financial institutions and businesses with concrete tools with which to design strategies capable of promoting sustainable investments, mitigating climate-related economic risks and strengthening the resilience of the economic system.
The project’s results have been disseminated through scientific publications, a dedicated website, and outreach initiatives targeting the academic community and stakeholders.