The drivers of multinational enterprises' climate change strategies: A quantitative study on climate-related risks and opportunities

The literature on business responses to climate change until now identified several drivers: regulatory changes; physical changes; product and technology innovation; operational efficiency; reputation; financial impacts; and changes in consumer needs. However, these studies are mainly based on qualitative research methods. Therefore, this study aims to investigate with a quantitative analysis the contextual drivers of multinational enterprises' responses to climate change considering the risks and opportunities identified by previous studies. The research is based on the Carbon Disclosure Project climate questionnaire of 2015, which includes information of 1896 companies within different industries and countries. The analyses highlight that the business continuity is mainly endangered by the physical changes; changes in demand for goods/services or new product/services correspond to market changes drivers; changes in market valuation correspond to reputation drivers. Finally, changes in operational costs and investment opportunity correspond to regulatory drivers. The study provides contributions to the literature on business responses to climate change and implications for business and public policy.