Chapter 2: Climate-related Risks in Emerging Markets: Understanding the Landscape, Challenges and Strategic Solutions

The impact of climate-related hazards on emerging markets and resource valuation is the primary objective of this chapter’s analysis. Whereas emerging markets possess the capacity for expansion fiscally, they are increasingly vulnerable to tangible climate risks such as severe storm incidents and governmental forces associated with worldwide environmental targets. The present research explains how these risks confront traditional economic models using the examination of case studies, such as the economic effects of Cyclone Amphan, and the drought’s impact on the nation’s hydro energy growth. The significant role of Environmental, Social, and Governance (ESG) requirements in decreasing climate risk and establishing strong, balanced portfolios of assets for the long-term future is further examined in the chapter. The results illustrate how proactive approaches are required to control these dangers and take benefit of the changing prospects of developing nations.