L F D Z Gunathilaka
University of Sri Jayewardenepura, Sri Lanka
Title: Impact of climate transition risk of long term financial feasibility of rubber manufacturing organizations in Sri Lanka
Biography
Biography: L F D Z Gunathilaka
Abstract
Manufacturing has a role to play in both climate change mitigation and adaptation. Mitigation focuses on limiting the speed and scale of transition, making allowances for carbon economy change and exploitation opportunities to alter the financial viability, the capital stock and the business models. It has typically received utmost attention in policy circles, such as debates, over carbon pricing as a mechanism to reduce greenhouse gas (GHG) emissions across the economy. The purpose of this study is to examine the question of long term financial feasibility risk of transition of climate change to a low carbon future as an implication for stakeholders. The main objective of the study is on the risk associated with mitigation of climate change labeled as carbon risk and the associate long-term financial feasibility that may impact on the performance of assets and business portfolios at different stages to establish carbon management strategies effectively. This case study revealed that the commitments to maintain carbon neutrality in the upcoming application periods (year 2015-2021) by implementing the plan and achieving 7.24% of carbon reduction to its footprint against the base year (2015). Company will continuously maintain its carbon neutrality during 2016-2021 periods by offsetting 93% of carbon footprint calculated in each year after achieving 7.24% of emission reduction target through 321909 (Kilogram Carbon dioxide equivalent) kgCO2e emission reduction from the total emission. Impact of climate transition risk of loan-team financial feasibility is needed to reconcile businesses needs with concern to the environment to achieve prosperity in future. Recommendations are made to achieve low carbon economy while effectuating business performance in the long run.
