ANNOUNCEMENTS
This thesis focuses on the Representative Concentration Pathways (RCP) 4.5 and 6.0 scenarios and provides a thorough framework for assessing climate risks and transition risks associated with climate change in the automotive industry. The assessment of climate threats and the evaluation of transition risks are the two main sections of the study.
The study's first section focuses on climate hazards, specifically looking at how production facilities for automakers would be affected by rises in the maximum temperature. The analysis investigates how high temperatures over the next three decades could affect operational measures, such as production efficiency, energy consumption, and maintenance costs, using data from the MIROC climate model under RCP 4.5 and RCP 6.0 scenarios. In addition, the analysis shows where manufacturing facilities are located, which is important information for investors trying to reduce the risk of interruptions brought on by climate change. The identification of susceptible areas and the directioning of investment decisions toward areas with lesser climate risk depend heavily on this geographic study.
The expected sales of gasoline and electric vehicles (EVs) under various RCP scenarios through EPS are the main emphasis of the second section, which discusses transition hazards. This section assesses the potential effects of market factors, technology breakthroughs, and legislative changes on the adoption rates of electric cars (EVs) relative to gasoline-powered vehicles. The report offers a comprehensive knowledge of the possible shifts in market demand and the accompanying financial risks and opportunities for automobile companies by assessing sales estimates under RCP 4.5 and RCP 6.0. The purpose of this research is to assist businesses and investors in determining the transition risks and how best to devote resources to reduce them. This methodology provides a comprehensive approach to comprehending and managing the various risks that climate change poses to the automobile industry by combining climate risk analysis with transition risk assessment.
The purpose of this study's conclusions is to help investors make well-informed decisions and to assist the automobile industry in creating strong plans to strengthen their resistance to the risks connected with both climate change and transition.
Key words: Climate-related risk, transitional risk, RCPs, Automobile sector, Climate scenarios.
