Search results

1 – 10 of 958
Book part
Publication date: 15 February 2021

Biswa Nath Bhattacharyay

Climate and environment-related financial risks could significantly and negatively impact the financial sector in future, particularly its financing to those sectors…

Abstract

Climate and environment-related financial risks could significantly and negatively impact the financial sector in future, particularly its financing to those sectors adversely impacted by the climate-related risks, low-carbon policies and the transition from traditional energy sources-based economy to a more sustainable system with alternative energy sources. The participatory countries of the Paris Agreement agreed to align finance flows with a low-emission, low-carbon and climate-resilient growth, in order to facilitate achieving the long-term climate goals. The financial sector, therefore, needs to play a proactive role in aligning financial flows. It is, therefore, of utmost importance to study low-carbon finance and climate-related financial risks. This chapter examine how climate change can affect the financial sector. It discusses the concept, nature, measurement of climate risks and climate-related financial risks and associated prospects and challenges in the assessment and the measurement of these risks. It also presents the green financing initiatives and role of central banks and supervisory authorities and their monetary and financial policies in enhancing green financing and redirecting finance to low-carbon activities. In the financial sector, the insurance industry is highly vulnerable to such risks. The banking sector is yet to witness the serious impact of these risks. With the slowing of global economic growth, appropriate policies are needed to encourage banks to provide increased green finance with an adequate profitability. Studies recommend that climate-related risk has a strong potential impact on banks’ loan default rate as well as on the financial stability, there is hence a need to incorporate climate-related criteria and the systemic risk arising out of climate change into banks’ decision-making process and risk modelling and management. There is a need for developing an appropriate methodology for assessing and reducing these risks. Moreover, observers also anticipate a need for cooperation between banking regulators and banks to develop and adopt best practices in the management of environmental risks. The environment-related risks will call forth a multi-country, or regional, research office to collect and compile the required data and undertake analysis to enhance the banking sectors’ understanding of, and capacity to address, potential systemic environmental risks. What is needed is to test the feasibility of incorporating forward-looking scenarios for assessing potential impacts of providing credit to environmentally unsustainable or sustainable activities on financial stability.

Details

New Frontiers in Conflict Management and Peace Economics: With a Focus on Human Security
Type: Book
ISBN: 978-1-83982-426-5

Keywords

Article
Publication date: 12 July 2021

Subhash Abhayawansa and Carol Adams

This paper aims to evaluate non-financial reporting (NFR) frameworks insofar as risk reporting is concerned. This is facilitated through analysis of the adequacy of…

Abstract

Purpose

This paper aims to evaluate non-financial reporting (NFR) frameworks insofar as risk reporting is concerned. This is facilitated through analysis of the adequacy of climate- and pandemic-related risk reporting in three industries that are both significantly impacted by the COVID-19 pandemic and are at risk from climate change. The pervasiveness of pandemic and climate-change risks have been highlighted in 2020, the hottest year on record and the year the COVID-19 pandemic struck. Stakeholders might reasonably expect reporting on these risks to have prepared them for the consequences.

Design/methodology/approach

The current debate on the “complexity” of sustainability and NFR frameworks/standards is critically analysed in light of the COVID-19 pandemic and calls to “build back better”. Context is provided through analysis of risk reporting by the ten largest airlines and the five largest companies in each of the hotel and cruise industries.

Findings

Risk reporting on two significant issues, pandemics and climate change, is woefully inadequate. While very little consideration has been given to pandemic risks, disclosures on climate-related risks focus predominantly on “risks” of increased regulation rather than physical risks, indicating a short-term focus. The disclosures are dispersed across different corporate reporting media and fail to appreciate the long-term consequences or offer solutions. Mindful that a conceptual framework for NFR must address this, the authors propose a new definition of materiality and recommend that sustainable development risks and opportunities be placed at the core of a future framework for connected/integrated reporting.

Research limitations/implications

For sustainable development risks to be perceived as “real” by managers, further research is needed to determine the nature and extent of key sustainable development risks and the most effective mitigation strategies.

Social implications

This paper highlights the importance of recognising the complexity of the issues facing organisations, society and the planet and addressing them by encouraging robust consideration of the interdependencies in evolving approaches to corporate reporting.

Originality/value

This study contributes to the current debate on the future of corporate reporting in light of two significant interconnected crises that threaten business and society – the pandemic and climate change. It provides evidence to support a long-term oriented and holistic approach to risk management and reporting.

Details

Meditari Accountancy Research, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2049-372X

Keywords

Article
Publication date: 8 September 2021

Rosa Lombardi, Federico Schimperna, Paola Paoloni and Michele Galeotti

This paper investigates the quality and quantity of climate-related information disclosed by public interest entities (PIEs) in the non-financial disclosure scenario…

Abstract

Purpose

This paper investigates the quality and quantity of climate-related information disclosed by public interest entities (PIEs) in the non-financial disclosure scenario. Thus, this paper aims at drafting the state of the art on what is climate-related information disclosed by PIEs in the changing EU non-financial regulation assuming the Italian scenario and the industrial industry as significant in achieving the research aims.

Design/methodology/approach

The authors used the content analysis composing the sample of 34 large listed companies (i.e. PIEs) belonging to the industrial sector in Italy. The authors choose the Italian PIEs’ sustainability reports published in 2019 after the adoption of the EU directive and its guidelines. The authors adopted a coding and classification system, investigating the climate-related information through a systematic, objective and reliable method. The authors defined 99 indicators along the structure of the European Commission's guidelines and the indicator of disclosure, climate-related information indicator (CII). The framework mainly derives from the corporate disclosure theory and legitimacy and stakeholders' theories.

Findings

The results show the lack of several required climate-related information or a not in-depth presentation of information. Thus, findings are interesting in emphasizing that the current climate-related disclosure is at an early stage in complying with the European Commission's guidelines. Additionally, the findings enlarge previous theories on corporate disclosure, proposing new insights in the light of the recent interest in climate-related information.

Research limitations/implications

Evidence contributes to extending the existing literature, drafting the state of the art of what is the quality and the quantity of the climate-related information in the corporate disclosure in the European scenario.

Practical implications

This paper is directed to propose the state of the climate-related disclosure following the EU directive guidelines, proposing some evidence to support the path toward the integrations of information by several parts (e.g. companies, regulators and so on).

Originality/value

The paper is a useful baseline for academics, practitioners, policy-makers and regulators in understanding actions to adopt in the climate-related disclosure and what could be the impact of forthcoming regulations in the field, also having some metrics (e.g. score value of disclosure, the indicator of climate-related information disclosure – CII).

Details

Journal of Applied Accounting Research, vol. 23 no. 1
Type: Research Article
ISSN: 0967-5426

Keywords

Article
Publication date: 16 November 2015

Phimphakan Lebel, Niwooti Whangchai, Chanagun Chitmanat and Louis Lebel

– The purpose of this paper is to analyse how fish farmers manage climate-related risks and explore possible ways to strengthen risk management under current and future climate.

Abstract

Purpose

The purpose of this paper is to analyse how fish farmers manage climate-related risks and explore possible ways to strengthen risk management under current and future climate.

Design/methodology/approach

In total, 662 fish farmers in sites across Northern Thailand were interviewed about risks to the profitability of their fish farms and ways such risks were managed. Nonlinear canonical correlation analysis was used to relate risk factors to management practices at farm and river levels. In total, 68 in-depth interviews with farmers and other stakeholders provided additional information on climate risk management practices.

Findings

Farmers use a combination of adjustments to rearing practices, cropping calendars and financial and social measures to manage those risks, which they perceive as being manageable. Many risks are season, river and place specific; implying that the risk profiles of individual farms can vary substantially. Individual risks are often addressed through multiple practices and strategies; conversely, a particular management practice can have a bearing on several different risks. Farmers recognize that risks must be managed at farm and higher spatial and administrative scales. Social relations and information play critical roles in managing these complex combinations of risks.

Originality/value

This is one of the first papers to report in detail on how inland fish farmers manage climate-related risks. It underlines the need to consider multiple spatial and temporal scales and that farmers do not manage individual climate-related risks in isolation from other risks.

Details

International Journal of Climate Change Strategies and Management, vol. 7 no. 4
Type: Research Article
ISSN: 1756-8692

Keywords

Open Access
Article
Publication date: 12 May 2022

Noelle Greenwood and Peter Warren

Framed within global policy debates over the need for private financial flows to align with the capital requirements of the Paris Agreement, this paper examines UK asset…

Abstract

Purpose

Framed within global policy debates over the need for private financial flows to align with the capital requirements of the Paris Agreement, this paper examines UK asset managers in their approaches to disclosing and managing climate risk. This paper identifies and evaluates climate risk management practices among this under-researched investor group in their capacity to address fundamental behavioural obstacles to low-carbon investment.

Design/methodology/approach

This paper takes an inductive approach to document analysis, applying content and thematic analysis to the annual disclosures of the 28 largest UK asset managers (by assets under management), including the investment management arms of insurance and pension companies.

Findings

The main takeaway from this research is that today’s climate risk management strategies hold potential to effectively address traditionally climate risk-averse investor behaviour and investment processes in the UK asset management context. However, this research finds that the use of environmental, social and governance (ESG) investment strategies to mitigate climate risks is a “grey area” in which climate risk management practices are undefined within broad sustainability and responsible investment agendas. In doing so, this paper invites further research into the extent to which climate risks are considered in ESG investment.

Originality/value

This paper contributes to research in sustainable finance and behavioural finance, by identifying the latest climate risk management techniques used among UK-headquartered asset managers and uniquely evaluating these in their capacity to address barriers to low-carbon investment arising from organisational behaviours and processes.

Details

International Journal of Climate Change Strategies and Management, vol. 14 no. 3
Type: Research Article
ISSN: 1756-8692

Keywords

Article
Publication date: 1 October 2018

Niina Kautto, Alexei Trundle and Darryn McEvoy

There is a growing interest in climate change action in the higher education sector. Higher education institutions (HEIs) play an important role as property owners…

Abstract

Purpose

There is a growing interest in climate change action in the higher education sector. Higher education institutions (HEIs) play an important role as property owners, employers, education and research hubs as well as leaders of societal transformations. The purpose of this paper was therefore to benchmark how universities globally are addressing climate risks.

Design/methodology/approach

An international survey was conducted to benchmark the sector’s organisational planning for climate change and to better understand how the higher education sector contributes to local-level climate adaptation planning processes. The international survey focused especially on the assessment of climate change impacts and adaptation plans.

Findings

Based on the responses of 45 HEIs located in six different countries on three continents, the study found that there are still very few tertiary institutions that plan for climate-related risks in a systematic way.

Originality/value

The paper sheds light on the barriers HEIs face in engaging in climate adaptation planning and action. Some of the actions to overcome such hindering factors include integrating climate adaptation in existing risk management and sustainability planning processes, using the internal academic expertise and curriculum to assist the mapping of climate change impacts and collaborating with external actors to guarantee the necessary resources. The higher education sector can act as a leader in building institutional resilience at the local scale.

Details

International Journal of Sustainability in Higher Education, vol. 19 no. 7
Type: Research Article
ISSN: 1467-6370

Keywords

Article
Publication date: 10 June 2020

Brendan O'Dwyer and Jeffrey Unerman

This paper problematizes TCFD (Task Force on Climate-related Financial Disclosures) reporting in a way that demonstrates areas where academic research can contribute…

3943

Abstract

Purpose

This paper problematizes TCFD (Task Force on Climate-related Financial Disclosures) reporting in a way that demonstrates areas where academic research can contribute towards realizing the transformative potential of this unique form of sustainability accounting in its early stages of development.

Design/methodology/approach

The paper proposes a number of research agendas for impactful interdisciplinary research into new forms of corporate reporting of sustainability risks, opportunities and dependencies.

Findings

There are several major challenges that both reporting corporations and investors need to address in realizing the potential of TCFD style risks, opportunities and dependencies reporting. Key among these is developing new practices of climate-related scenario analysis and reporting.

Practical implications

There is potential for many different academic research studies to provide solid evidence in helping improve the practical impact of TCFD style sustainability reporting. These impacts may assist in moving corporate policies and actions towards zero carbon.

Originality/value

This is the first agenda-setting paper that addresses the need for, and opportunities of, academic research into TCFD reporting and its potential to transform corporate accounting and reporting of sustainability.

Details

Accounting, Auditing & Accountability Journal, vol. 33 no. 5
Type: Research Article
ISSN: 0951-3574

Keywords

Open Access
Article
Publication date: 25 July 2019

Michael Nkuba, Raban Chanda, Gagoitseope Mmopelwa, Edward Kato, Margaret Najjingo Mangheni and David Lesolle

This paper aims to investigate the effect of using indigenous forecasts (IFs) and scientific forecasts (SFs) on pastoralists’ adaptation methods in Rwenzori region, Western Uganda.

2099

Abstract

Purpose

This paper aims to investigate the effect of using indigenous forecasts (IFs) and scientific forecasts (SFs) on pastoralists’ adaptation methods in Rwenzori region, Western Uganda.

Design/methodology/approach

Data were collected using a household survey from 270 pastoralists and focus group discussions. The multivariate probit model was used in the analysis.

Findings

The results revealed that pastoralists using of IF only more likely to be non-farm enterprises and livestock sales as adaptation strategies. Pastoralists using both SF and IF were more likely to practise livestock migration.

Research limitations/implications

Other factors found to be important included land ownership, land tenure, gender, education level, non-farm and productive assets, climate-related risks and agricultural extension access.

Practical implications

Increasing the number of weather stations in pastoral areas would increase the predictive accuracy of scientific climate information, which results in better adaptive capacity of pastoralists. Active participation of pastoral households in national meteorological dissemination processes should be explored.

Social implications

A two-prong approach that supports both mobile and sedentary pastoralism should be adopted in rangeland development policies.

Originality/value

This study has shown the relevance of IFs in climate change adaptation methods of pastoralists. It has also shown that IFs compliment SFs in climate change adaptation in pastoralism.

Details

International Journal of Climate Change Strategies and Management, vol. 11 no. 4
Type: Research Article
ISSN: 1756-8692

Keywords

Book part
Publication date: 2 May 2014

Abstract

Details

Building Resilient Urban Communities
Type: Book
ISBN: 978-1-78350-906-5

Book part
Publication date: 25 September 2012

Madhu C. Dutta-Koehler

Purpose – This work offers an investigation of the planning and implementation of climate-adaptation and vulnerability-reduction strategies in coastal mega-cities of the…

Abstract

Purpose – This work offers an investigation of the planning and implementation of climate-adaptation and vulnerability-reduction strategies in coastal mega-cities of the Global South, utilizing Kolkata, India, as a case study. This research is designed to identify factors that aid the implementation of climate-centered action in resource-constrained environments of developing countries and provide a set of policy guidelines reflecting best practices.

Methodology/approach – This work draws principally upon analysis of semistructured field interviews conducted in Kolkata, India, during December 2010 and January 2011. The findings are informed by additional data sources as well, including field observations, informal dialogues and meetings, and a review of secondary literature.

Findings – This work identifies several key success factors, including organizational restructuring, resource redistribution, technological innovation, use of external consultants, coupling of climate and development projects, and integration of climate approaches into infrastructure projects.

Research limitations – This research draws upon Kolkata as a case study; thus the work's broader applicability and utility depend on the similarities between the situation in Kolkata and that of other urban areas. As a local study, this work may also offer fewer insights for regional and national policy.

Originality and value – This work fills a timely, unmet need for a greater understanding of climate-adaptation action in the context of cities of the developing world. The extensive use of personal interviews provides unique insights into the minds of planning officials and professionals and draws upon their practical experience to draw lessons for a wide range of similar environments.

Details

Urban Areas and Global Climate Change
Type: Book
ISBN: 978-1-78190-037-6

Keywords

1 – 10 of 958