Sustainable finance, which integrates environmental, social and governance criteria on financial decisions rests on the fact that money should be used for good purposes. Thus, the financial sector is also expected to play a more important role to decarbonise the global economy. To align financial flows with a pathway towards a low-carbon economy, investors should be able to integrate into their financial decisions additional criteria beyond return and risk to manage climate risk. We propose a tri-criterion portfolio selection model to extend the classical Markowitz’s mean-variance approach to include investor’s preferences on the portfolio carbon risk exposure as an additional criterion. To approximate the 3D Pareto front we apply an efficient multi-objective genetic algorithm called ev-MOGA which is based on the concept of $\epsilon$-dominance. Furthermore, we introduce a-posteriori approach to incorporate the investor’s preferences into the solution process regarding their climate-change related preferences measured by the carbon risk exposure and their loss-adverse attitude. We test the performance of the proposed algorithm in a cross-section of European socially responsible investments open-end funds to assess the extent to which climate-related risk could be embedded in the portfolio according to the investor’s preferences.

This work focuses on the design and construction of an experimental test bench of three degrees of freedom with application in educational environments. It is constituted by a gyroscopic structure that allows the movements of a quadcopter to analyze the control systems. In this context, the main features of the mechanical and electronic design of this prototype are described. At the same time, the main characteristics with respect to existing platforms are highlighted in aspects such as: system autonomy, cost, safety level, operation ranges, experimental flexibility, among others. The possible controller design approaches for quadcopter stabilization can extend to many basic and advanced techniques. In this work, to show the operation and didactic use of the platform, the development of the controller for tilt angle stabilization under two different approaches are presented. The first approach is through PID control, oriented for undergraduate students with basic level in control theory. The second approach is by means of State Feedback, oriented to students with more advanced level in this field. The result of this work is an open test bench, enabled for the experimentation of control algorithms using Matlab-Simulink.

A comparative study of two state-of-the-art stochastic model predictive controllers for linear systems with parametric and additive uncertainties is presented. On the one hand, Stochastic Model Predictive Control (SMPC) is based on analytical methods and solves an optimal control problem (OCP) similar to a classic Model Predictive Control (MPC) with constraints. SMPC defines probabilistic constraints on the states, which are transformed into equivalent deterministic ones. On the other hand, Scenario-based Model Predictive Control (SCMPC) solves an OCP for a specified number of random realizations of uncertainties, also called scenarios. In this paper, Classic MPC, SMPC and SCMPC are compared through two numerical examples. Thanks to several Monte-Carlo simulations, performances of classic MPC, SMPC and SCMPC are compared using several criteria, such as number of successful runs, number of times the constraints are violated, integral absolute error and computational cost. Moreover, a Stochastic Model Predictive Control Toolbox was developed by the authors, available on MATLAB Central, in which it is possible to simulate a SMPC or a SCMPC to control multivariable linear systems with additive disturbances. This software was used to carry out part of the simulations of the numerical examples in this article and it can be used for results reproduction.

In this paper, a novel method for aerodynamic model identification of a micro air vehicle is proposed. The principal contribution is a technique of wind estimation that provides information about the existing wind during flight when no air-data sensors are available. The estimation technique employs multi-objective optimization algorithms that use identification errors to propose the wind-speed components that best fit the dynamic behavior observed. Once the wind speed is estimated, the flight experimentation data are corrected and used to perform an identification of the aircraft model parameters. A multi-objective optimization algorithm is also used, but with the objective of estimating the aerodynamic stability and control derivatives. Employing data from different flights offers the possibility of obtaining sets of models that form the Pareto fronts. Deciding which model best adjusts to the experiments performed (compromise model) will be the ultimate task of the control engineer.