This book offers a deep dive into the investment and business implications of climate change, uncovering both the emerging opportunities and pressing challenges. Through a powerful lens of big data analytics, it guides readers across four critical pillars of climate finance: climate data, indices, pricing, and reporting and engagement.
The book equips readers with a comprehensive analytics toolkit by harnessing cutting-edge tools — large language models, generative AI, statistical inference in machine learning, optimization techniques, and advanced visualization methods. With a strong emphasis on practical application, it blends clear explanations, real-world case studies, and actionable insights to help investors, businesses, and financial professionals make informed decisions in a rapidly evolving field.
Bridging the gap between theory and practice, this book stands as an indispensable resource for practitioners seeking to integrate data-driven strategies into climate finance and position themselves at the forefront of sustainable investing.
Contents:
- About the Authors
- Introduction:
- Why and How Climate Change Matters to the Financial World
- The Value of Big Data Science in Climate Finance
- Outline of the Book
- Fundamental Pillar of Advancing Climate Research in Finance: Climate Investment Data:
- The Category of Climate Data For Investment
- The Construction of Climate Rating System
- Integration of Big Data Analytics in Propelling Climate Data Development
- Essential Framework for Financing the Net-zero Journey: Climate Investment Index Built from Climate Data:
- Climate Performance-Based Index Based on Quantitative Climate Data
- Climate Perception-Based Index Based on Textual Climate Data
- Holistic Picture of Pricing Climate Risk: Climate Investing with Valuation and Integration of Climate Data and Index:
- Definition and Category of Climate Risk
- Stock Market Response of Climate Events
- Factor-Based Approach to Pricing Climate Risk
- Global Perspectives: Carbon Markets Across Countries
- Accountability and Alignment to Client Needs and Human Development: Climate Investment Reporting and Engagement:
- Fundamental Pieces within Investment Mandate Supporting Climate Reporting and Engagement
- Case Results of Climate Reporting and Engagement
- Integration of Big Data Analytics in Advancing Climate Reporting and Engagement
- Conclusion and Outlook
- Appendices:
- Prompt for Extracting and Summarizing Relevant Data (Qualitative or Quantitative Information)
- Prompt for Judging Climate Events and Writing Abstract
- Prompt for Automatic Expert-Involved Prompt Engineering
- Guidelines for Question Answering (QA)
- Questions for Extracting and Summarizing Information
- Prompt for Climate Guidelines Conformity Assessment
- Prompt for Climate Controversial Event Materiality Assessment
- References
- Index
Readership: Advanced climate change finance students; research personnel; and broader readership of professionals in the field, such as investors, policy makers, consultants, corporate managers, technical specialists, and the public at large.