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Introduction: Looking at the risks faced by enterprises in recent years, we see that the risks have shifted radically from traditional economic and financial risks to those posed by environmental and social factors. Developments in the field of activity of enterprises (climate change, the increasing relationship between the society and enterprises through shareholders and partners) have led to an increase in the number and diversity of risks faced by enterprises. It is only possible for enterprises to cope with these increasing risks by adopting a proactive and contemporary management approach. One of these contemporary management approaches that businesses should adopt is sustainability. Many researches have shown that the integration of sustainability into risk management has proved successful in risk management.

Purpose: Looking at previous literature, this study sets forth what financial (economic), environmental and social risks businesses may face today, explains with a few examples what measures companies can implement to eliminate these risks, and a future perspective is presented to companies. In addition, this study makes recommendations on how to successfully manage the risks that companies may face and emphasizes what the positive results of sustainable risk management can be (increasing the business value, ensuring sustainability and increasing the shareholder value). Mention was made about the fact that the ability of enterprises to successfully manage sustainability risks depends on their ability to prevent, identify, mitigate and manage risks, and it was emphasized that the environmental, social and governance risks must, to a large extent, be taken into account by many circles (regulators and customers), mainly investors. In addition, this study aims to identify and evaluate the current and possible future risks and to serve as a guide for actions to be taken to minimize risks or keep them at an optimum level.

Methodology: In this section, a compilation study on sustainability risk management (SRM) was done in the light of information obtained from various reports, scientific articles and books. In other words, in this section, information from various scientific sources on SRM was systematically collected, analyzed, interpreted and evaluated, and effort was made to present an up-to-date, extensive conceptual framework related to SRM. In addition, the scientific literature – especially in the historical development process of the last decade – on the debate of SRM was examined in this study, and the highest point reached in this debate today is revealed. Thus, the positioning of different views on the sustainability issue and the latest developments in the literature were also evaluated properly.

Findings: As a result of the examination of the scientific literature on SRM in the last decade, it has been determined that SRM has led to many other favorable outcomes, from the sustainability of the enterprise to gaining competitive advantage, increasing its goodwill, reputation and efficiency.

Examines the environmental risks involved in managing and investing in commercial/industrial property in the UK. Looks at some of the questions which prudent landlords should now be asking of their tenants in order to assess these risks, and concludes that an environmental risk rating system should be developed and adopted by those responsible for managing and investing in commercial and industrial property. Quite simply according to the Royal Institution of Chartered Surveyors, 1993, “...all those involved in the appraisal of land and buildings need to include environmental factors in their considerations...” and a system which can allow this to take place should be thoroughly debated by the profession. It is also suggested that tenants who are adopting policies to regulate their environmental performance offer landlords an inherently less risky investment from an environmental perspective. The strength of the occupying tenant′s covenant should also be an integral part of any assessment of potential environmental risks which face property managers.

This study aims to examine the research output on climate change, environmental risks and insurance from 1986 to 2020, thereby revealing the development of the literature through collaborative networks. The relationship between insurance, climate change and environmental threats has gained research attention. This study describes the interaction between insurance, climate change and environmental risk.

This study is a bibliometric analysis of the literature and assessed the current state of science. A total of 97 academic papers from top-level journals listed in the Scopus database are shortlisted.

The understanding of climate change, environmental risks and insurance is shaped and enhanced through the collaborative network maps of researchers. Their reach expands across different networks, core themes and streams, as these topics develop.

Data for this study were generated from English-written journal articles listed in the Scopus database only; subsequently, this study was representative of high-quality papers published in the areas of climate change, environmental risks and insurance.

The results of this study can be useful to academic researchers to aid their understanding of climate change, environmental risks and insurance research development, to identify the current context and to develop a future research agenda.

The findings of this study can improve the understanding of industry practitioners about climate change and global warming challenges, and how insurance can be used as a tool to address such challenges.

This study is a novel attempt. To the best of the authors’ knowledge, this is one of the first studies to better understand climate change, environmental risks and insurance as a research topic by examining its evolution in an academic context through visualization, coupling and bibliometric analysis. This bibliometric study is unique in reviewing climate change literature and providing a future research agenda. Using bibliometric data, this study addressed the technical aspects and the value it adds to actual practice. Bibliometric indicators quantitatively and qualitatively evaluate emerging disciplinary progress in this topic.

The purpose of this research is to explore the effect of time delay on the perception of environmental risks beyond time discounting, and thus provide a reference for effective communication related to environment and environmental risks.

Ten risk scenarios across four time delay conditions were designed. Computer program randomly presented different risk scenarios to student subjects. Risk perception was measured through equivalent certain loss elicited by bi-section method. In all, 50 students from Harbin Institute of Technology Shenzhen Graduate School participated in the experiment.

Time delay makes the subjects optimistic toward environmental risk with the exclusion of time discounting. The more distant in time the occurrence of an environmental risk, the less in intensity subjects will perceive it as a severe threat. Also, there is a noticeable difference in environmental risk perception between males and females.

This tentative research focusses on exploring the existence of time delay effect on environmental risk perception. Only student subjects are recruited for this research. Future studies are needed to extend the population to people of different backgrounds in order to generalize the finding.

Current ethical appeal of zero social discount rate is unlikely to be effective. Time delay effect in people's environmental risk perception should be acknowledged. Such an acknowledgement is the basis of trust in risk communication. Communication effort needs to address this time delay effect to make people alert to long-term environmental risks, and eventually change their environmental behaviors.

The explorative research represents the first attempt to investigate the effect of time delay on environmental risk perception when time discounting is excluded. It suggests a new direction to understand public optimism toward delayed environmental risks, and reluctance to take proactive actions, and thus offers a new insight into related communication efforts.

In this paper, we use empirical models to examine the main channel through which FDI escalates environmental risk. We explore whether countries with “weak” or better still low tax rate attract “dirty” FDI to deteriorate their environment

The analysis uses a 40-year panel to show that foreign direct investment (FDI) and tax policy matter in accounting for cross-country environmental risk.

Our sample finds support that the tax channel is the main medium through which FDI worsens environmental risk. By discomposing tax policy into low and high regimes, we report that countries that deliberately reform tax policy to bait FDI have higher environmental risk.

A useful lesson from here is that using tax policy to lure FDI amounts to shortchanging capital risk for environmental risk.

The paper is unique because it identifies tax policy as a channel through which FDI affects the environment in Africa. Other studies overly simplifies the relationship between FDI and its impact on the environment, and it makes it difficult and ambiguous in offering specific policy direction.

The purpose of this paper is to investigate whether firms with high environmental disclosure have a low possibility of non-standard audit opinions and audit fees and whether this trend is more obvious after than prior to the Measures for the Disclosure of Environmental Information (Measure) implemented in 2008.

Based on the Measures implemented in 2008, the authors select data for the listed manufacturing firms from 2004 to 2006 (Pre-Measure) and from 2009 to 2011 (Post-Measure) as research samples to investigate the relationships between environmental disclosures, audit opinions and audit fees with difference in difference models. In addition, we also consider the influence of media attention, the polluting industry and internal control on the audit effect of environmental disclosure.

The results show that the level of environmental disclosure is significantly negatively correlated with the possibility of issuing non-standard audit opinions and audit fees after measure is implemented, especially hard environmental information. Further evidence indicates that the auditing effect of environmental disclosures is stronger on firms that receive less media attention, in firms with better internal controls, and in firms belonging to industries with heavy pollution.

In the Chinese setting, a high level of environmental information disclosures can effectively reduce the audit risk and lead to a high possibility of standard audit opinions and low audit fees. This effect is pronounced after issuing Measure. The conclusions suggest that measure and increasing environmental disclosure have an obvious positive audit effect and that firms should be forced or encouraged to disclose more environmental information from the perspective of auditors in China.

Management is sometimes challenged by investors to justify the financial benefits of voluntary disclosure and transparency related to corporate social responsibility (CSR). Researchers have found inconsistent results when examining the relationship between CSR reporting and financial performance. The purpose of this paper is to explore the relationship between voluntary CSR reporting and financial performance. Specifically, this paper addresses three questions. First, is there a significant difference in Global Reporting Initiative (GRI) reporting level for firms in a high environmental risk sector compared to those in a low environmental risk sector? Second, does GRI reporting level significantly influence financial performance measures, such as the risk ratios and information ratio? And third, does the relationship between GRI reporting level and financial performance measures differ significantly based on sector environmental risk? These questions are particularly relevant to the Indian business environment, where CSR is not just voluntary but mandated by regulation since 2013. The Indian Government is the first to do so and is ahead of many nations in collaborating with businesses to address not just environmental impacts but also social effects of industry on the community.

This study examined the relationship between GRI reporting level and financial performance for 173 firms with different levels of environmental risk. ANOVA and MANOVA were used to examine for differences in GRI reporting level and financial performance for firms from the various sectors and also to determine if there were significant relationships between GRI level and certain financial risk ratios.

Results indicate that firms in sectors with high environmental risk adopt GRI framework at a higher level than firms with low environmental risk. There is no significant relationship found between GRI reporting and financial performance at an aggregate level. However, environmental risk is found to moderate the relationship between GRI reporting and financial reporting, such that firms with high risk experience a more significant relationship between the GRI level that is adopted and financial performance.

CSR is quickly becoming a pathway to sustainable competitive advantage for businesses today. Such CSR efforts can lead to both reputational and financial performance implications. Organizations not only adopt CSR in response to regulatory requirements, but also frequently do so voluntarily to address stakeholder concerns. This study sheds valuable insight on the positive effects of CSR reporting, which provides important implications for Indian organizations.

In recent years, bankers have come to realise that banking operations, in particular lending, affect and are affected by the environment and that consequently the banks might have an important role to play in helping to raise environmental standards. Stricter environmental regulations have forced companies to invest in environmentally friendly technologies and pollution control measures and in turn generated lending opportunities for bankers. However, the environment also presents significant risks to banks including direct, indirect and reputational. This article begins with an attempt to define environmental risk in the context of bank lending. It goes on to assess the relative environmental risk exposures of the UK’s major clearing banks using publicly available data on current market shares of environmentally sensitive industry sectors.

This paper aims to provide an index benchmarking financial services firms against their environmental performance. The paper also introduces a new definition of the environmental risk that fits the current business and regulatory landscape of financial services firms. The Environmental Risk Index (ERI) helps financial services firms review their corporate social responsibility (CSR)/environmental and social governance (ESG) frameworks and address any shortcomings. With this in mind, every financial institution should understand that the Index is not primarily about the ranking, but about the highlighted areas that require significant investment to improve the overall management and understanding of environmental risk. This paper points to the link between being “green” and financial performance. As it transpires, addressing environmental risk serves not only the planet but also banks themselves by bringing in new business, reducing costs and avoiding reputational damage.

The ERI relies on 44 variables grouped into ten thematic vectors that relate to different aspects of environmental risk management. Data for calculating the ERI are obtained by reviewing CSR and Sustainability Reports produced annually by financial services firms. Reports encompassing 2013 have been analysed to ensure objectivity and comparability of the results. A universal approach to all organisations has been taken in the numerical calculation of this index. The variables have been constructed such that they fit a wide range of institutions, from G-SIB banks and international asset managers through to smaller, domestic firms. As it transpires, the efforts to become “greener” are similar for financial institutions regardless of their market capitalisation or international reach.

As far as the general ranking for the ERI is concerned, the range between the first and the last bank equals 524 points. With the maximum of 1,000 points that could be achieved in the ranking, the average score is 633 points and over 50 per cent of the banks have scored above the average. As it transpires, European banks outperform institutions from other regions with the average ERI score of 700. Banks repressing the Middle East region lag behind in their environmental performance. Interestingly, ERI scores and revenue figures are almost uncorrelated for large banks. This proves that any bank, despite its global presence and revenue, can develop similar environmental risk initiatives. The empirical analysis of the index results and revenue figures suggest that the revenue is related to the environmental performance. In other words, it is profitable to become “greener”. For every point in the ERI score gained, the revenue should increase slightly by a factor of 0.02.

This paper cuts through the environmental jargon, extensive literature review on environmental issues, socio-political issues and scientific study to deliver a clear picture of what needs to be done in the area of the environmental risk for financial services firms to reduce costs, increase business, improve reputation, address certain regulatory initiatives, strengthen the environmental and social governance and become more environmentally responsible.

This paper, in a pioneering attempt, has presented the ERI encompassing financial services firms. At this point, the paper serves as a benchmarking tool for financial institutions willing to compare their “green” status. Looking at environmental risk has become an important part of the journey towards carefully managing business processes to generate a positive image. The importance of environmental risk is further underscored by investors, shareholders and regulators taking an increasing interest in banks’ activities. With this in mind, financial services firms need to scrutinise their operations with a particular focus on the quality of management in terms of people, environment and processes.

The purpose of the paper is to provide a conceptual foundation to enhance the body of knowledge related to supplier selection in light of global supply chain disruptions and risk.

The proposed tool is based on a multi‐criteria optimization framework, which will enable the user to gain a better understanding of how the consideration of each of these risk measures will affect the recommended solution/supply base. The model serves as a complement to existing supplier selection models by incorporating regional risks associated with potential suppliers' locations and density risks based on great circle distance measures.

The paper demonstrated the proposed model by using the great circle distance measure to calculate the density risk and two secondary data sources to capture environmental risk. One measure captures a variety of environmental issues such as political, legal, security, fiscal, labor, and regulatory issues. The other measure captures the historical effects of weather on dollar and human losses in each country of the world, which represents the potential for severe weather events and the country's ability to react to these events.

Although the paper does not consider all possible risks, it augments prior research through the development of a decision support tool that offers supply risk mitigation when sourcing globally. Specifically, the tool allows for the analysis and mitigation of two key global risk measures, environmental risk and density risk, when selecting suppliers for mission‐critical parts. The model is able to support various sourcing strategies such as sole, multiple and cross sourcing and can be used in conjunction with other disruption mitigation strategies such as supply redundancy.

Global sourcing has provided significant performance enhancements, but has put firms in a vulnerable position relative to the potential devastating effects of supply disruptions. While supply managers are cognizant of the risks associated with global sourcing, limited knowledge and tools are available to allow them to mitigate these risks. Although it would need to be adapted to the nuances of company supply chains, it is believed that the tool provides value to managerial decision making relative to the sourcing of mission critical parts/products.

Prior work in this area has not adequately incorporated contemporary issues and risks in global sourcing. The paper augments prior research through the development of a multi‐objective decision support model for strategic supplier selection that is focused on two important contemporary factors: environmental risk and density risk. The proposed model captures important interdependent relationships between these two factors that have not been considered in prior selection models.