Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 24th Aug 2026, 01:51:58am WEST
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Daily Overview |
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Climate Finance and Transition Risk Location: B128 Session Chair: Patrick Zeitinger, Technical University of Munich | |
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How Climate Transition Risks Affect Firms: Theory and Metrics 1: University of Sydney; 2: University of British Columbia The ongoing transition to a low-carbon economy creates risks and opportunities for firms. Measuring, disclosing, and mitigating such risks is a significant focus of climate finance. Modelling firms and their supply chains with Melitz-type industries, we show that high emissions do not necessarily translate to high transition risks. Other factors alongside emissions are critical, including market structure, where emissions are released in the value chain, and the drivers of decarbonization—whether driven by costly regulations or productivity-enhancing innovation. Moreover, commonly used risk metrics can misclassify some firms as vulnerable when they might actually benefit from economy-wide decarbonization. We outline conditions under which a firm’s Scope 1, 2, and 3 emissions accurately reflect its risk. We also identify scenarios in which aggregating these different emissions scopes enhances (or obscures) the true picture of a firm’s transition risk. Our paper lays out a framework for evaluating and improving the wide variety of transition-risk metrics currently used to guide investor decisions, inform stakeholders, and comply with climate-risk disclosure mandates. | |