Abstract: Includes bibliographical references (leaves 104-113). ; An emerging valuation technique, real options analysis, has been found to provide insight on value in situations of high uncertainty. Based on financial options theory, it values options relating to real assets. For example, if a company has the option to delay the manufacture of a patented product until the demand for the product is know with greater certainty, this option enables the company to time the investment in order to maximise the returns to the product, and prevents a costly investment mistake should market demand not ever materialise. The option therefore represents a source of value to the company, the value being to retain flexibility in an uncertain environment. According to the real options approach, the uncertainties of climate change could represent sources of value for companies, depending on their ability to remain flexible and to identify, maintain and develop their options. This perspective has implications for both companies' strategic response to challenges arising from climate change and for the valuation of companies by the investor community. This thesis is aimed at answering the following research question: "Does the real options approach to valuation enhance the understanding of the impact of climate change on company value?"
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