The Impact of Climate Risks on Enterprise Value under the new IFRS Sustainability Framework

Othmar Lehner, Arawela Sovala, Nikolett Gyürki, Stefan Fink, Susanne Leitner-Hanetseder

Research output: Contribution to conferencePaperpeer-review

Abstract

The paper explores the imperative for global entities to disclose climate-related risks and opportunities, as mandated by the new IFRS sustainability disclosure standards S1 and S2. The paper investigates the multifaceted impact of climate-related risks. Emphasizing the importance of addressing both risks and opportunities, the paper navigates the implications for enterprise valuation. By integrating science-based scenario data and stress tests, the research aims to fill a critical gap in existing climate risk models that primarily focus on macroeconomic factors. Using a fictitious real estate company as an illustrative case study, the paper proposes a robust framework for integrating climate risk into financial forecasting and enterprise valuation. The findings contribute valuable insights for stakeholders, ranging from banks and asset managers to entities, emphasizing the increasingly essential role to consider climate-related risks in financial decision-making.

Original languageGerman (Austria)
Publication statusPublished - 2024
Event46th EAA Annual Congress - Bukarest, Bukarest, Romania
Duration: 15 May 202417 May 2024
https://eaa-online.org/congress-2024/

Exhibition

Exhibition46th EAA Annual Congress
Country/TerritoryRomania
CityBukarest
Period15.05.202417.05.2024
Internet address

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