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Assessing Climate Transition Risks in the Colombian Processed Food Sector: A Fuzzy Logic and Multi-Criteria Decision-Making Approach

Author

Listed:
  • Juan F. Pérez-Pérez

    (Artificial Intelligence and Robotics Research Group, EIA University, Envigado 055428, Colombia)

  • Pablo Isaza Gómez

    (Artificial Intelligence and Robotics Research Group, EIA University, Envigado 055428, Colombia)

  • Isis Bonet

    (Artificial Intelligence and Robotics Research Group, EIA University, Envigado 055428, Colombia)

  • María Solange Sánchez-Pinzón

    (Grupo Nutresa, Medellin 050023, Colombia)

  • Fabio Caraffini

    (Department of Computer Science, Swansea University, Swansea SA1 8EN, UK)

  • Christian Lochmuller

    (Artificial Intelligence and Robotics Research Group, EIA University, Envigado 055428, Colombia)

Abstract

Climate risk assessment is critical for organisations, especially in sectors such as the processed food sector in Colombia. This study addresses the identification and assessment of the main climate transition risks using an approach that combines fuzzy logic with several multi-criteria decision-making methods. This approach makes it possible to handle the inherent imprecision of these risks and to use linguistic expressions to better describe them. The results indicate that the most critical risks are price volatility and availability of raw materials, the shift towards less carbon-intensive production models, increased carbon taxes, technological advances, and associated development or implementation costs. These risks are the most significant for the organisation studied and underline the need for investments to meet regulatory requirements, which are the main financial drivers for organisations. This analysis highlights the importance of a robust framework to anticipate and mitigate the impacts of the climate transition.

Suggested Citation

  • Juan F. Pérez-Pérez & Pablo Isaza Gómez & Isis Bonet & María Solange Sánchez-Pinzón & Fabio Caraffini & Christian Lochmuller, 2024. "Assessing Climate Transition Risks in the Colombian Processed Food Sector: A Fuzzy Logic and Multi-Criteria Decision-Making Approach," Mathematics, MDPI, vol. 12(17), pages 1-27, August.
    • Handle: RePEc:gam:jmathe:v:12:y:2024:i:17:p:2713-:d:1468091
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    References listed on IDEAS

    as
    1. Geoffrey Heal & Antony Millner, 2013. "Uncertainty and Decision in Climate Change Economics," NBER Working Papers 18929, National Bureau of Economic Research, Inc.
    2. Eslam Mohammed Abdelkader & Tarek Zayed & Hassan El Fathali & Ghasan Alfalah & Abobakr Al-Sakkaf & Osama Moselhi, 2023. "An Integrated Multi-Criteria Decision Making Model for the Assessment of Public Private Partnerships in Transportation Projects," Mathematics, MDPI, vol. 11(16), pages 1-41, August.
    3. Henry He Huang & Joseph Kerstein & Chong Wang, 2018. "The impact of climate risk on firm performance and financing choices: An international comparison," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(5), pages 633-656, July.
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