https://www.journaleska.com/index.php/bmi <p>Bankers, Markets and Investors aims at publishing short and innovative research articles in the areas of banking, financial markets and investment with relevant practical application for investors. The purpose of the journal is to create a bridge between academics and professionals, by publishing articles that have direct relevance to those working in finance. We seek short articles, forward-looking and rigorous, written in a style accessible to professional readership. The themes of the journal include the following: portfolio choice, investment management, institutional investors (pension funds, sovereign wealth funds, insurance, mutual funds…), individual investors and household finance, behavioral finance, alternative investments (hedge funds, private equity…), derivatives and structured finance, liquidity and transaction costs, socially responsible investment, funds and corporate governance, regulation and financial risk management, capital markets, interest rate instruments, asset backed securities, equities and convertibles, securities design, currencies, corporate finance, hedging strategies, asset liability management.</p> ESKA EDITION en-US Bankers, Markets & Investors 2101-9304 https://www.journaleska.com/index.php/bmi/article/view/6710 FRANCK BANCEL Copyright (c) 2021 Bankers, Markets & Investors 2021-10-27 2021-10-27 166 1 1 https://www.journaleska.com/index.php/bmi/article/view/6713 <p>This study provides an overarching state-of-the-art review of climate change-related accounting practices for investment portfolios. With the adoption of the Paris Agreement and European Commission plan on sustainable finance, the question regarding the compatibility of financial flows with decarbonisation objectives has gained cardinal importance among capital market participants. The application of a viable climate-alignment framework has become inevitable for legislators, regulators, investors, issuers, and rating agencies. Carbon footprinting and intensity measurement associated with portfolio investments and its climate impact are central issues for climate performance and risk assessment, management, reporting and GHG emissions reduction target setting. This study evidences the absence of a consensual method and a notable variation in the results attained for the same portfolio across different approaches. This study focused on practices related to listed assets, namely on the attribution of climate impact generated by issuers to portfolios and investors. The findings offer a comparative study of the existing methodologies and introduce portfolio climate impact accounting concept and structure.</p> EKATERINA PONOMAREVA RESHETNIKOVA CIFRE Copyright (c) 2021 Bankers, Markets & Investors 2021-10-27 2021-10-27 166 3 19 https://www.journaleska.com/index.php/bmi/article/view/3366 <p>In this paper, we argue that current finance, and the prevailing fair value accounting system, is disconnected from companies and from strong sustainability requirements, making it difficult to develop a climate finance system that is operational and aligned with the challenges of climate preservation. Based on this observation, we propose an exploratory and theoretical study which introduces how and why a particular and innovative ecological accounting approach, the CARE model, currently called upon by a growing number of practitioners and researchers, is a relevant framework to re-conceptualise the issue of climate finance. From a theoretical point of view, CARE offers a suitable language for structuring the issues of ecological costs, debts and conservation and associated financing. From a practical point of view, it offers a methodological support that can be used to address these issues, from an accounting and management point of view as well as from an investor's point of view, ensuring compliance with the Paris Agreements 2°C goal in particular.</p> Alexandre Rambaud Hugues Chenet Copyright (c) 2021 Bankers, Markets & Investors 2021-10-27 2021-10-27 166 20 43 https://www.journaleska.com/index.php/bmi/article/view/6714 <p>This paper comparatively investigates the financial performance of traditional and green energy indices from 2010 up to the current context of Covid-19. In particular, we analyze whether the green finance index supplants the traditional class of energy indices and examine whether consideration of a green index could provide a useful hedging solution in the specific context of Covid-19, a situation marked by a significant health risk and high volatility in the energy sector. Accordingly, we estimate different performance ratios and present some interesting findings. In particular, we find evidence of volatility and time variation in the market beta, suggesting that, whether conventional or green, energy sector sensitivity in fact depends on the market state (bear versus bull). Further, financial performance appears to be time varying and regime-dependent. Indeed, the conventional energy sector outperforms in a bear market, while the green index shows stronger financial performance in a bull market. These results are of interest for both investors and portfolio managers, helping them to balance their investments and optimize their portfolios according to the state of the market or the price regime.</p> PASCAL ALPHONSE DAVID BOURGHELLE FREDJ JAWADI PHILIPPE ROZIN Copyright (c) 2021 Bankers, Markets & Investors 2021-10-27 2021-10-27 166 44 55 https://www.journaleska.com/index.php/bmi/article/view/6715 <p>Financial literature has only recently become interested in the consequences of climate change on company values. Our article contributes to the literature by concentrating on the question of the impact of carbon pricing on company valuation. We show that the information on carbon emitted by companies is relatively limited and derived from multiple sources. Based on carbon price development scenarios prepared by international organisations and companies, we present a range of simulations that show the major impact of the ‘carbon’ variable when valuing companies in the oil and gas sector. We conclude that the quality of information on firms’ emissions is now a key issue for their assessment.</p> FRANCK BANCEL HENRI PHILIPPE Copyright (c) 2021 Bankers, Markets & Investors 2021-10-27 2021-10-27 166 56 63 https://www.journaleska.com/index.php/bmi/article/view/6711 ESKA EDITION Copyright (c) 2021 Bankers, Markets & Investors 2021-10-27 2021-10-27 166 2 2