Climate Risk, Legal Liability, and Portfolio Strategy: A Qualitative Review of Brown Assets as Hedging Instruments in High-Carbon Scenarios

Santoso ; Seger ; Qalbia ; Farah
International Journal of Business Law, Business Et... 📅 2026 Vol 3, No 2 🔗 DOI: 10.70142/ijbge.v3i2.457
Abstract
This qualitative literature review synthesizes current evidence on how investors navigate climate risk, legal liability, and portfolio strategy by reassessing the financial role of brown assets in high carbon transition contexts. The review finds that carbon intensive assets, traditionally viewed as stranded or declining, may provide conditional hedging value when policy trajectories remain uncertain, green technologies are not yet fully scalable, and transition risks are uneven across sectors. Legal liability emerges as a powerful driver of portfolio decisions, as fiduciaries face increasing scrutiny regarding climate disclosure, risk governance, and alignment with net zero commitments. The synthesis reveals that the strategic value of brown assets is dynamic rather than static, depending on regulatory convergence, technological maturity, and institutional investor risk preferences. Overall, the review highlights the interplay between climate related litigation pressures and investment strategy, emphasizing the need for adaptive risk assessment frameworks in a rapidly evolving transition landscape.
Keywords
Climate Risk; Brown Assets; Legal Liability; Portfolio Strategy; Transition Risk
How to Cite

Santoso, et al. (2026). Climate Risk, Legal Liability, and Portfolio Strategy: A Qualitative Review of Brown Assets as Hedging Instruments in High-Carbon Scenarios. International Journal of Business Law, Business Ethic, Business Communication & Green Economics (IJBGE), 3(2). https://doi.org/10.70142/ijbge.v3i2.457

Santoso, Seger; Qalbia, Farah, "Climate Risk, Legal Liability, and Portfolio Strategy: A Qualitative Review of Brown Assets as Hedging Instruments in High-Carbon Scenarios," International Journal of Business Law, Business Ethic, Business Communication & Green Economics (IJBGE), vol. 3, no. 2, 2026.

Santoso, Seger; Qalbia, Farah. "Climate Risk, Legal Liability, and Portfolio Strategy: A Qualitative Review of Brown Assets as Hedging Instruments in High-Carbon Scenarios." International Journal of Business Law, Business Ethic, Business Communication & Green Economics (IJBGE), vol. 3, no. 2, 2026.

Santoso, Seger; Qalbia, Farah. "Climate Risk, Legal Liability, and Portfolio Strategy: A Qualitative Review of Brown Assets as Hedging Instruments in High-Carbon Scenarios." International Journal of Business Law, Business Ethic, Business Communication & Green Economics (IJBGE) 3, no. 2 (2026).

Santoso, et al. (2026) 'Climate Risk, Legal Liability, and Portfolio Strategy: A Qualitative Review of Brown Assets as Hedging Instruments in High-Carbon Scenarios', International Journal of Business Law, Business Ethic, Business Communication & Green Economics (IJBGE), 3(2). doi: 10.70142/ijbge.v3i2.457.

Santoso, Seger; Qalbia, Farah. Climate Risk, Legal Liability, and Portfolio Strategy: A Qualitative Review of Brown Assets as Hedging Instruments in High-Carbon Scenarios. International Journal of Business Law, Business Ethic, Business Communication & Green Economics (IJBGE). 2026;3(2).

Artikel Terkait

Agency Costs, Voting Divergence, and Corporate Governance: A Qualitative Synthesis of Dual-Class Stock and Sunset Clause Mechanisms

Benardi; Kusnanto, Eri

Humanity, Resilience, and Equity in Corporate Failure: A Literature Review on Developing Fairness Metrics for Inclusive Insolvency Systems

Grace Yulianti; Sigit Pramono Hadi

Balancing Transparency and Innovation in the Global Litigation Finance Market: A Qualitative Synthesis of Risks, Regulation, and Policy Debates

Novrizal; Ria Wulandari

Designing Effective Insolvency Frameworks for Multinational Corporations: A Literature Review on Reform Priorities and Value Foundations in Developing Countries

Cahyatih Kumandang; Mia Christy Patricia

Designing Optimal Whistleblowing Mechanisms: A Qualitative Literature Review on Bounty Size, Strategic Thresholds, and Regulatory Effectiveness

Ahembang; Agustina, Selvi

Moral Legitimacy and Joint Purpose: A Literature Review on the Ethical Foundations of Collaborative Organizations

Yulianti, Grace; Irawan, Dadang
Tren Sitasi Jurnal