Capitalizing on a climate of change

April 2008
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Capitalizing on a climate of change

At a glance

The issue of climate change is evolving from primarily a scientific and public policy concern to one of business risks and opportunities. So how is the issue relevant for companies looking to pursue acquisitions or raise capital?

How is the issue of climate change relevant for companies looking to pursue acquisitions or raise capital?

The issue of climate change is evolving from primarily a scientific and public policy concern to one of business risks and opportunities. Until recently, the impact of climate change on the deal market was barely on the radar of most businesses. However, national policy action on greenhouse gas emissions is requiring companies in virtually every industry to think about the impacts of energy and climate policies on their businesses.

Highlights from this PwC publication:

M&A trends: New laws and growing stakeholder interest in climate change are forcing industries to factor climate change into every deal; for companies contemplating a transaction, the ways in which climate change affects deal value should be thoroughly understood.

Capital raising transactions: To maximize their ability to raise capital, companies must have a good understanding of climate change-related risks and form a view with respect to how they should be managed.

Reporting: With investors and other stakeholders across industry sectors inquiring about sustainability and emissions reduction strategies, climate change figures into the assessment of a company's financial well-being, future business opportunities, and risks.