Climate value at risk (climate VaR)
ESG & GovernanceAn estimate of how much a company's or portfolio's value could fall under given climate scenarios.
Climate VaR adapts the familiar Value at Risk idea to climate. It combines transition costs, such as carbon prices, with physical damage, under scenarios such as 1.5°C or 3°C of warming. Asset managers use it to compare portfolios and find concentrations of risk. Results depend heavily on the model and scenario chosen, so they are best used to compare, not as precise forecasts.
Related terms
Learn the concept
From the research
A Comparative Financial Analysis of Three Listed Companies
Three IT services leaders, five years of numbers: similar growth, very different margins and returns on capital, and their October 2026 valuations.
MarketsIPO Issue Price vs. Listing Price vs. Subsequent Performance
Seven of India's most talked-about IPOs since 2021, tracked from issue price to listing to October 2026. Buying on listing day lost money in six of seven.
ValuationPaytm: Valuing a Company With No Clean Comparable
Paytm is part payments processor, part device business, part loan distributor. Why no single peer fits, and how to value it in parts and in reverse.