Do Market Valuations Incorporate Climate Risk

摘要: Evidence supporting potential impacts of climate change is growing. While it difficult to conclusively link any specific incident change, there are an increasing number natural events that associated with extreme weather have imposed huge costs on affected companies and industries. The nature risk makes the probability, magnitude, timing firms diffuse evaluate. We explore market valuation different types risks as revealed in company 10-K disclosures find related physical effects operations, enacted or pending regulations, renewable technologies, well other, non-specified risks, negatively value. In addition, exception risk, these forms a higher implied cost capital.