Climate risk disclosures: Why more information isn’t always better for investors by Professor Simone Varotto

Munich, 16 October 2013 – There is currently a high level of uncertainty on the international financial markets, due to the budget dispute in the USA surrounding the proposed raising of the borrowing limit. The markets are waiting with bated breath to see whether the Democrats and the Republicans will be able to agree on raising the debt ceiling, which currently stands at just under 17 trillion US dollars. The key question for investors is whether the USA and other countries will be able to pay back the debts they have taken on or whether, as in the case of the debt cut in Greece, they can expect to see losses on their investments. A recent study based on sustainability rating agency oekom research’s country ratings shows that sustainability ratings are a reliable indicator of countries’ solvency and that taking sustainability ratings into account allows investors to make a better assessment of the overall risks.

As always, student members from the University of Reading Finance Society have provided a review of the most recent Industry Insights event:

The ICMA Centre is very pleased to strengthen its relationship with the CFA Institute by having the BSc in Finance and Investment Banking recognised as a CFA program partner – in addition to the pre-existing recognition of the MSc in Investment Management.