In this article, we develop a critical review of the empirical and theoretical literature concerning the impact of climate‐related risks on the price of financial assets. We first present the theoretical links between asset pricing and climate‐related risks and develop a theory of how climate ...
In recent years, the investment community has become increasingly aware of the investment risks from both the physical effects of climate change and the regulatory responses to facilitate the transition to a net-zero economy. The potential impact of clim
The academic and policy debate regarding the role of central banks and financial regulators in addressing climate-related financial risks has rapidly expanded in recent years. This Perspective presents the key controversies and discusses potential research and policy avenues for the future. Developing a ...
Risks of flooding and foundation problems are still barely reflected in discounts on home prices. As a result, future buyers bear these risks on their own
The academic and policy debate regarding the role of central banks and financial regulators in addressing climate-related financial risks has rapidly expanded in recent years. This Perspective presents the key controversies and discusses potential research and policy avenues for the future. Developing a ...
including household names like Chevron, Exxon Mobil, BMW, and Air France-KLM, alongside most of their external auditors, are not fully accounting for climate-related risks in financial statements. This is despite significant financial risks faced from the climate crisis and net-zero ...
(2018), for example, provide compelling evidence that higher climate risk results in lower financial returns and higher earnings volatility. Climate risk is expected to have a direct and an indirect impact on firm performance. First, climate risk could inflict physical damage on assets held by ...
The objective of these guidelines is to improve transparency on the risks related to climate change and the usefulness of this information for the financial sector, allowing it to take into account the risks related to climate and the way in which each organisation is managing them.TCFD report:...
BaselCommittee onBankingSupervision ConsultativeDocument Principlesfortheeffective managementand supervisionofclimate- relatedfinancialrisks Issuedforcommentby16February2022 November2021 ThispublicationisavailableontheBISwebsite(.bis). ©BankforInternationalSettlements2021.Allrightsreserved.Briefexcerptsmaybereproducedor ...
Companies are increasingly required to report on the climate-related risks they face, using mathematical models to estimate how resilient their assets and businesses might be at different levels of warming. The International Sustainability Standards Board last week launched long-awaited guidance for compan...