Environmental Hazards and Risk Management in the Financial Sector: A Systematic Literature Review

Miriam Breitenstein; Duc Khuong Nguyen; T. Walther

doi:10.1111/joes.12411

Environmental Hazards and Risk Management in the Financial Sector: A Systematic Literature Review

Miriam Breitenstein, Duc Khuong Nguyen, T. Walther^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › Academic › peer-review

Abstract

We conduct a systematic literature review on environmental and climate-related risk management in the financial sector. We classify the current literature into three categories: (i) the impact of environmental concerns on financial risk; (ii) the current state of environmental risk practices in the financial sector; and (iii) measures to assess the financial exposure to environmental risks. We find that financial institutions can reduce their risk exposure by highly committing with environmental responsibility and performance. Moreover, the increase in willingness to assess climate-related financial risk incentivizes corporate managers to adopt more proactive environmental policies and practices.

Original language	English
Pages (from-to)	512-538
Number of pages	27
Journal	Journal of Economic Surveys
Volume	35
Issue number	2
DOIs	https://doi.org/10.1111/joes.12411
Publication status	Published - Apr 2021

Bibliographical note

Publisher Copyright:
© 2021 The Authors. Journal of Economic Surveys published by John Wiley & Sons Ltd

Keywords

Banking
Climate
Environment
Financial Institutions
Risk Management

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10.1111/joes.12411

joes.12411Final published version, 620 KB

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3428953

Cite this

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title = "Environmental Hazards and Risk Management in the Financial Sector: A Systematic Literature Review",

abstract = "We conduct a systematic literature review on environmental and climate-related risk management in the financial sector. We classify the current literature into three categories: (i) the impact of environmental concerns on financial risk; (ii) the current state of environmental risk practices in the financial sector; and (iii) measures to assess the financial exposure to environmental risks. We find that financial institutions can reduce their risk exposure by highly committing with environmental responsibility and performance. Moreover, the increase in willingness to assess climate-related financial risk incentivizes corporate managers to adopt more proactive environmental policies and practices.",

keywords = "Banking, Climate, Environment, Financial Institutions, Risk Management",

author = "Miriam Breitenstein and Nguyen, {Duc Khuong} and T. Walther",

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year = "2021",

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AB - We conduct a systematic literature review on environmental and climate-related risk management in the financial sector. We classify the current literature into three categories: (i) the impact of environmental concerns on financial risk; (ii) the current state of environmental risk practices in the financial sector; and (iii) measures to assess the financial exposure to environmental risks. We find that financial institutions can reduce their risk exposure by highly committing with environmental responsibility and performance. Moreover, the increase in willingness to assess climate-related financial risk incentivizes corporate managers to adopt more proactive environmental policies and practices.

KW - Banking

KW - Climate

KW - Environment

KW - Financial Institutions

KW - Risk Management

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JO - Journal of Economic Surveys

JF - Journal of Economic Surveys

IS - 2

ER -

Environmental Hazards and Risk Management in the Financial Sector: A Systematic Literature Review

Abstract

Bibliographical note

Keywords

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Climate Change and Banks' Risk Management: Can It Affect Investment Decisions?

Environmental Hazards and Risk Management in the Financial Sector: A Systematic Literature Review

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