Climate Risk
Columbia Business School Spring 2026 B-term course
Course number: B8233
MBA & MS in Climate Finance
Time TBD
Credit hours: 1.5
COURSE DESCRIPTION
Climate risk is real. It is costly to the economy, society, and the world, as evidenced by high and ever-increasing Social Cost of Carbon (SCC) estimates. Most businesses and corporations, meanwhile, experience climate risk mostly indirectly, via policy, technology, and market risks. This class focuses on climate risks head on, exploring to which extent they also pose direct financial risks to business now and in the near future. Along the way, we will answer a number of questions, such as: If climate change is so costly, why does it not show up (more) in asset prices? If climate pollution is so bad, why is polluting so profitable? We will also dive into questions around insurability of physical assets like real estate, stress testing of financial assets, and corporate scenario planning. Lastly, we will discuss risk as opportunity for those relatively better able to take advantage of risks and uncertainties.
PRE & COREQUISITE COURSES
Core courses in Managerial Economics and Corporate Finance as well as Business and Climate Change (B8705).
