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This research presents a new model for analyzing the effects of government policies on climatic disasters on financial markets. Using Fama–MacBeth rolling regressions and the construction of model-proposed risk factors, three major risk factors are found to be significant in explaining stock returns. First, there is the risk of climate disasters. Second, there is the risk of uncertainty regarding government actions. Third, there is the risk of government response to climatic disasters. Through the increase in the cost of capital from climate disasters and the uncertainty of government response, the future cost of capital is higher, leading to less investment and lower productivity. However, the government's actions to compensate for losses due to climate damage help offset the damages from disasters. This implies that the previous estimates of economic damages due to climate risk have been underestimated. This work adds to the literature by providing a fuller estimate of the economic implications of climate change. [ABSTRACT FROM AUTHOR]

Scenario analysis is a comprehensive approach to assess the impact of climate-related transition risk on businesses. Environmental, social, and governance (ESG) scores are popular tools with financial institutions (FI's) for green-scoring practices and since they characterise a company's performance from an ESG perspective, they have been criticised for enabling "greenwashing" when used within the context of climate risk. Commercially available ESG scores are also available for listed entities, while FI counterparties are often unlisted. This study develops a methodology for creating in-house environmental scores (E-scores), which are then used to effectively choose appropriate transition pathways to be used in company-specific forward-looking scenario analysis. Such scenario analysis can be used to forecast the company's financial position, including the cost of its greenhouse gas (GHG) emissions, and quantify the impact of transition climate risk on specified metrics. The choice of metrics depends on what the results of the analysis are used for. Two metrics are identified for being useful for risk management and credit decisions: future profitability and weighted average carbon intensity. Finally, the study demonstrates how this process can be implemented with a practical worked example, using only publicly available data. [ABSTRACT FROM AUTHOR]

Cities worldwide are facing varying degrees of ongoing threats closely tied to climate change. Research is emerging that addresses climate risks as a pressing issue, especially for vulnerable cities in the Global South; however, there is a significant lack of systematic and application-oriented research on ecosystem-based adaptation to urban climate change. This study uses Shenyang in Northeast China as a case study, employing multisource data and integrated methods to examine and depict the dynamics of urban ecosystem-based adaptation to climate change amid rapid urbanization. The results indicate a decline in capacity for climate change adaptation during the study period. A framework for mainstreaming ecosystem-based adaptation is proposed, identifying specific strategies for climate change mitigation and adaptation in urban policy and planning processes in Shenyang. It also has significance for other cities to draw lessons from. By linking urban ecosystem dynamics, the capacity for urban climate adaptation, and sustainable urban governance, this study bridges the gap between research and practice in urban climate change adaptation, and expands the contribution of geography-based interdisciplinary integration to urban resilience. More practically, it provides references for Shenyang in adapting to climate change and transitioning to sustainable development. [ABSTRACT FROM AUTHOR]

Climate change is already having a negative impact on many areas of human activity, affecting life globally. It is more urgent than ever to increase our adaptive capacity to respond to current and future climate change risks. Climate services refer to a specialized sector that encompasses both research and operational activities. This sector is primarily focused on interpreting and communicating knowledge and information about climate risks in a manner that is tailored to meet the specific needs of diverse user communities. Climate services offer a range of specialized outputs, including forecasts, assessments, and advisories, which enable users to make decisions that are based on an understanding of the potential impacts of climate change. The outputs of climate services are designed to help diverse user communities effectively manage risks and capitalize on opportunities arising from climate variability and change. An attempt is made to outline the fundamental elements of climate services and point out their contribution to various aspects of human activity, focusing on their essential role in the adaptability of the priority for action agricultural sector, which appears as considerably vulnerable to the change of considerably susceptible to climate conditions. This article is structured to answer basic questions about climate services in general and to show the specificities of climate services in the agricultural sector. [ABSTRACT FROM AUTHOR]