CLIMATE FINANCE WITH BIG DATA ANALYTICS

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.