UDC 336.64
DOI: 10.36871/ek.up.p.r.2023.09.01.008
Authors
Aleksandr A. Sonin,
Russian University of Economics named after G. V. Plekhanov, Moscow, Russia
Abstract
Scenario analysis has become widespread in corporate finance as a tool for planning and
risk assessment. Recently, international organizations and institutional investors have been recommending
companies to analyze financial stability in various climate change scenarios, which contributes to the growing
popularity of the scenario approach.
The article describes the main distinctive properties of scenarios as a tool for analyzing future events,
offers a classification of scenarios, discusses the main problems when using scenarios in practice, compares
scenario analysis with alternative approaches. Particular attention is paid to the analysis of recommendations
issued by international institutions regarding the use of scenarios to assess the risks and opportunities associated
with climate change.
Keywords
climate change, corporate finance, strategy, scenario, scenario analysis, finance, sustainable development.
