A1512
Title: A tale of dynamic tail climate transition risk exposure: TCaRE
Authors: Juan-Angel Jimenez-Martin - Complutense of Madrid (Spain) [presenting]
Laura Garcia-Jorcano - Universidad de Castilla-La Mancha (Spain)
M Dolores Robles - Universidad Complutense de Madrid (Spain)
Abstract: TCaRE is introduced, which measures the exposure of industry portfolios to climate transition risks (CTR). CTR, a significant challenge for firms transitioning to a low-carbon economy, negatively impacts corporate profitability. The analysis reveals that TCaRE is influenced by both firm-specific characteristics and broader market trends. Industry dynamics, climate events, and external factors such as market volatility and policy uncertainty contribute to the complexity of TCaRE. Understanding TCaRE is crucial for investors and managers in navigating the evolving landscape of climate-related financial risks.
