* Global efforts to limit the effects of climate change will have a profound impact on company valuations. Yet many executives lack a clear understanding of what to expect—and few have formulated plans to respond.
* The effects will vary, depending on a given industry’s response to emerging technologies and regulations, the behavior of its customers, and the current positioning of individual companies and their ability to change.
* Executives should act immediately to be competitive in a low-carbon future.
This article contains the following exhibits:
* Exhibit 1: Climate change will have a major effect on shareholder value in many, but not all, sectors.
* Exhibit 2: Regional regulatory differences and the access of companies in some regions to cheaper power will make margins within the primary aluminum industry more volatile, creating both winners and losers.
* Exhibit 3: Stringent standards in the consumer electronics industry would reduce energy consumption and even reduce costs.
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