We examine the impact of government commitment to combating climate change on firm value in relation to a firm's climate risk exposure. We identify major recent regulatory events around climate change that are not fully predicted, including the surprise election of Donald Trump to President of...

Scenario analysis is a well-established management tool for developing and executing organizational strategy. While stress testing (a form of scenario analysis) has been used for policy-making and benchmarking in the banking sector, climate-related scenario analysis is a more recent development....