The shift in the economic landscape needed to achieve net-zero targets is expected to be profound and may result in substantial expenses for unprepared industries and businesses. Undoubtedly, these expenses could have a significant impact on the cash flows and valuations of firms, potentially undermining their capacity to manage debt effectively and ultimately leading to increased default probabilities and heightened credit risks. There is already some evidence suggesting that transition risk, as quantified by a company's current carbon emissions data, has an influence on credit risk. UEBS and NWG will work together to attain insights into how the scale and pace of the economic transformation, as well as the correlated credit risk, exhibit variations across diverse sectors, regions, and throughout time.
Participating members
- Prof. Luca Taschini
Partners
