Single event transition risk: A measure for long term carbon exposure.

Although there is a growing consensus that a low-carbon transition will be necessary to mitigate accelerated climate change, the magnitude of transition risk for investors is difficult to measure exactly. Investors are therefore constrained by the unavailability of suitable measures to quantify the magnitude of the risk and are forced to use the likes of absolute emissions data or ESG scores in order to manage their portfolios. In this article, we define the Single Event Transition Risk (SETR) and illustrate how it can be used to approximate the magnitude of the total exposure of the price of a share to the low-carbon transition.

Modeling the Commodity Prices of Base Metals in Indian Commodity Market Using a Higher Order Markovian Approach.

A higher order Markovian (HOM) model to capture the dynamics of commodity prices is proposed as an alternative to a Markovian model. In particular, the order of the former model, is taken to be the delay, in the response of the industry, to the market information. This is then empirically analyzed for the prices of copper mini and four other bases metals, namely aluminum, lead, nickel and zinc, in the Indian commodities market.