DOI: 10.38050/2078-3809-2024-16-3-47-58

Abstract

The purpose of this work is to describe approaches to taking into account transitional climate risks to analyse the work of transitional climate risks’ channels on the value of companies in order to structure approaches and take into account direct and indirect effects. For this purpose, key drivers were identified that influence economic agents and specific financial indicators of companies. Specific channels were also collected and described, taking into account the complex simultaneous influence of various factors.

Thus, as part of the analysis, it was found that in the context of the sustainable development and the increase of public attention to the problem of global warming and the carbon intensity of economy, there is a growing need for companies to understand their contribution. The emergence of a new type of risks affecting the value of a company requires economic agents to monitor and assess transitional climate risks. This is the first step towards developing a strategy to mitigate such risks to reduce financial losses for companies in the long term.

Keywords: transitional climate risks, channels, company value, carbon neutrality, risk mitigation, carbon intensity.

JEL: G140, G380, G390.

For citation: Loginova, V.S. (2024) Approaches to Taking into Account Transition Climate Risks in the Value of Companies. Scientific Research of Faculty of Economics. Electronic Journal, vol. 16, no. 3, pp. 47-58. DOI: 10.38050/2078-3809-2024-16-3-47-58.

Download