As published on Runderc

In the recent scientific article by Mykhailo Rushkovskyi for “Green, Blue & Digital Economy Journal” one can find an outlook of the fundamental trends of the last decade related to climate change, as well as interstate and global economic campaigns to slow it down, which create a powerful new determinant for multinational enterprises (MNEs) in corporate governance, risk management and the sound management of climate risks and opportunities.

The analysis is based on recent studies by leading international scientists such as the International Energy Agency and the Economist Intelligence Unit, authorized UN bodies, universities, and the MNE Task Force on Climate-related Financial Disclosures.

The results of the analysis showed that climate risks and opportunities already have a clear monetary value and impact on MNE. Today’s efficient business faces the need to build an effective system for managing such risks, which, in addition to its direct effect on MNE, will also be an important signal to stakeholders, which, in turn, can reduce the cost of capital raised and increase revenues level. For some EU countries, it will soon become mandatory to highlight climate risk management principles and approaches in annual reports. Internal models are being developed to show the impact of cli-mate change on the business of MNEs (e.g. an increase of 1.5 °C, 2 °C, 4 °C in total temperature).

A unified approach to climate risk management is therefore becoming a topic of great importance to MNEs and their stakeholders, including regulators, investors, shareholders, and society. The analysis provides an in-depth understanding of the main factors of climate-risk management for MNEs, as well as its practical implications arising in the global economy.

The full article on the web version of “Green, Blue & Digital Economy Journal” – http://baltijapublishing.lv/index.php/gbdej/article/view/1521/1537