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

48 Pages Posted: 31 Jul 2019 Last revised: 28 May 2020

See all articles by Miriam Breitenstein

Miriam Breitenstein

Dresden University of Technology - Chair of Finance and Financial Services

Duc Khuong Nguyen

IPAG Business School

Thomas Walther

Utrecht University - School of Economics

Date Written: January 1, 2020

Abstract

We conduct a systematic literature review on environmental and climate related risk management in the financial sector. The systematic literature review identified a total of 36 relevant articles. A formal coding leads to the aggregation and classification of papers to three main categories that consider the impact of environmental concerns on financial risk, the current state of environmental risk practices in the finance sector, and lastly measures to assess those risks within financial institutions. Our results put forward the risk reduction for financial institutions which highly commit with environmental responsibility and performance. More importantly, investors’ increase in awareness and willingness to assess climate-related financial risk would incentivize corporate managers to adopt more proactive environmental policies and practices. These findings also allow for intriguing discussions about several alleys for future research.

Keywords: Environment, Climate, Risk Management, Banking, Financial Institutions

JEL Classification: G20, G32, Q51, Q54, Q56,

Suggested Citation

Breitenstein, Miriam and Nguyen, Duc Khuong and Walther, Thomas, Environmental Hazards and Risk Management in the Financial Sector: A Systematic Literature Review (January 1, 2020). University of St.Gallen, School of Finance Research Paper No. 2019/10. Available at SSRN: https://ssrn.com/abstract=3428953 or http://dx.doi.org/10.2139/ssrn.3428953

Miriam Breitenstein

Dresden University of Technology - Chair of Finance and Financial Services ( email )

Dresden
Germany

Duc Khuong Nguyen

IPAG Business School ( email )

184 BD Saint Germain
Paris, 75006
France

HOME PAGE: http://www.ipag.fr/en/

Thomas Walther (Contact Author)

Utrecht University - School of Economics ( email )

Kriekenpitplein 21-22
Adam Smith Building
Utrecht, +31 30 253 7373 3584 EC
Netherlands

HOME PAGE: http://www.thomas-walther.info

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