´Carbon Value at Risk´ (CVaR) refers to the potential financial burden that can result for a company from taking climate risks into account. It is a metric that quantifies the loss of value due to CO2 emission risks in different scenarios, and thus assesses the risk to the company that may arise from a low-carbon transformation of the economy. Carbon Value at Risk is a concept that helps companies and investors understand and manage the financial risks associated with climate change by quantifying the impact of climate risks on a company’s balance sheet.
