Corporate Finance Under Climate Crisis

This textbook addresses the complexities associated with the practice of corporate finance in the transition to a Net-Zero world. Understanding the impact of climate change on corporate finance requires synthesis of climate science, climate policy, and traditional finance tools. The book provides readers with the knowledge, skills, and innovative thinking required to navigate the complex landscape of climate change within the corporate setting.

This textbook holds a unique and influential position in the marketplace due to its focus on the critical intersection of corporate finance and climate change. Unlike traditional corporate finance textbooks, this resource specifically addresses the challenges, opportunities, and strategies associated with investment and financing decisions and risk management in the face of the global climate crisis. By exploring topics such as integrating climate risks in financial decision-making, valuing climate-related investments, and the role of financial institutions in climate finance, this textbook equips students, finance professionals, and corporate leaders with the knowledge and tools needed to drive positive change and build a sustainable future for businesses worldwide.

Autorentext

Sandra Dow is Professor Emeritus at the Middlebury Institute of International Studies at Monterey, USA. She holds a PhD in International Finance from Concordia University in Montreal. Professor Dow began developing an advanced corporate finance class in ESG Risk Assessment in 2010 at the Middlebury Institute of International Studies. In the decade that followed the course evolved to its latest iteration as Corporate Finance in Climate Change. She has written extensively on corporate governance, in addition to research focusing directly on environmental and social risks. She reviews regularly for several finance and pedagogical journals and was the corporate finance/corporate governance subject editor for Research in International Business & Finance.

Yuwei Shi is a Visiting Professor in the Coastal Science & Policy Program and the Academic Director of the Blue Pioneers Accelerator Program at the University of California, Santa Cruz, USA. He is also Professor Emeritus at the Middlebury Institute of International Studies, USA. He was the founding dean of Middlebury's Graduate School of International Policy and Management, and led the integration of its two predecessor schools in policy and business. He was also the founding director of the Frontier Market Scouts Program, an award-winning education program in social entrepreneurship and impact investing. Yuwei is an expert in competitive strategy, early-stage venture business model development and venture performance evaluation. He has published over three dozen papers in peer-reviewed journals and a number of books and book chapters. He is an award-winning teacher and researcher who has taught MBA and doctoral programs in nearly a dozen universities across the globe.

Klappentext
In a time of unprecedented environmental and financial challenges, this book offers a well-crafted synthesis of corporate finance principles and climate-related strategies. It provides invaluable insights into how businesses can manage risks, harness opportunities, and achieve sustainable value creation. An essential addition to the literature on corporate finance in a rapidly changing global economy. William L. Megginson, Price Chair in Finance, University of Oklahoma This book bridges the gap between corporate finance and sustainability, offering a critical lens on how businesses can integrate financial strategies with climate action. Drawing on real-world examples and rigorous analysis, it is an essential guide for policymakers, corporate leaders, and academics seeking to understand and navigate the financial dimensions of climate solutions. A must-read for anyone aspiring to drive transformative change through finance. Gireesh Shrimali, Head of Transition Finance Research, Oxford Sustainable Finance Group This book is for those refusing to let finance remain a bystander in sustainability. As CEO of Wovoka, leading nature-based solutions for resilience, I understand the link between finance and sustainability. The authors tackle valuation, returns, and scalable solutions with rigor and relevance. A blueprint for action, it's essential for those committed to transforming finance for a sustainable future. -Lee Pearson, CEO of Wovoka This textbook addresses the complexities associated with the practice of corporate finance in the transition to a Net-Zero world. Understanding the impact of climate change on corporate finance requires synthesis of climate science, climate policy, and traditional finance tools. The book provides readers with the knowledge, skills, and innovative thinking required to navigate the complex landscape of climate change within the corporate setting. Sandra Dow is Professor Emeritus at the Middlebury Institute of International Studies at Monterey, USA. She holds a PhD in International Finance from Concordia University in Montreal. Professor Dow began developing an advanced corporate finance class in ESG Risk Assessment in 2010 at the Middlebury Institute of International Studies. In the decade that followed the course evolved to its latest iteration as Corporate Finance in Climate Change. Yuwei Shi is a Visiting Professor in the Coastal Science & Policy Program and the Academic Director of the Blue Pioneers Accelerator Program at the University of California, Santa Cruz, USA. He is also Professor Emeritus at the Middlebury Institute of International Studies, USA. He was the founding dean of Middlebury's Graduate School of International Policy and Management, and led the integration of its two predecessor schools in policy and business. He was also the founding director of the Frontier Market Scouts Program, an award-winning education program in social entrepreneurship and impact investing.

Inhalt

Chapter 1: Introduction to Corporate Finance under Climate Crisis.- Chapter 2: Climate Change: Key Concepts for the Corporate Sector.- Chapter 3: Climate Change and the Challenges for Central Banks: Implications for Monetary Policy and Financial Stability.- Chapter 4: Non-Financial Disclosures: Standards, Strategies, and Future Outlook.- Chapter 5: Measuring and Disclosing Greenhouse Gas Emissions Introduction.- Chapter 6: Unraveling the Pathways: Exploring the Role of Scenarios in Projecting Climate Futures.- Part II: Risks and Opportunities in Climate Change and Financial Implications.- Chapter 7: Physical and Transition Risk Introduction.- Chapter 8: Risk, Return, & the Cost of Capital.- Chapter 9: How Climate Change Shapes Capital Structure and Corporate Payout Decisions.- Chapter 10: Climate Change and Green Technology: Beyond Emission Mitigations.- Part III: Practical Tools and Applications.- Chapter 11: Project Valuation in Climate Crisis.- Chapter 12: Putting a Price on Carbon.- Chapter 13: Carbon, Crisis, and Strategy: ExxonMobil and Shell Face the Future.- Part IV: Governance and the Future of Finance.- Chapter 14 Corporate Governance under Climate Change: Ensuring Strategic Cohesion from Today to 2100.- Chapter 15: The End and Beginning: The Shift Towards Stakeholder Capitalism.