Sustainable Finance: A Journey Toward ESG and Climate Risk

61 Pages Posted: 27 Apr 2022

See all articles by Monica Billio

Monica Billio

University of Venice - Department of Economics; Ca Foscari University of Venice - Dipartimento di Economia

Michele Costola

Ca' Foscari University of Venice

Iva Hristova

Ca' Foscari University of Venice

Carmelo Latino

Leibniz Institute for Financial Research SAFE

Loriana Pelizzon

Leibniz Institute for Financial Research SAFE

Date Written: April 26, 2022

Abstract

The present paper proposes an overview of the existing literature covering several aspects related to environmental, social, and governance (ESG) factors. Specifically, we consider studies describing and evaluating ESG methodologies and those studying the impact of ESG on credit risk, debt and equity costs, or sovereign bonds. We further expand the topic of ESG research by including the strand of the literature focusing on the impact of climate change on financial stability, thus allowing us to also consider the most recent research on the impact of climate change on portfolio management.

Keywords: Environmental, social, and governance factors (ESG); credit risk; debt cost; equity cost; sovereign bonds; portfolio management

JEL Classification: M14, G24, G11

Suggested Citation

Billio, Monica and Billio, Monica and Costola, Michele and Hristova, Iva and Latino, Carmelo and Pelizzon, Loriana, Sustainable Finance: A Journey Toward ESG and Climate Risk (April 26, 2022). SAFE Working Paper No. 349, Available at SSRN: https://ssrn.com/abstract=4093838 or http://dx.doi.org/10.2139/ssrn.4093838

Monica Billio (Contact Author)

Ca Foscari University of Venice - Dipartimento di Economia ( email )

Cannaregio 873
Venice, 30121
Italy

HOME PAGE: http://www.unive.it/persone/billio

University of Venice - Department of Economics ( email )

Fondamenta San Giobbe 873
Venezia 30121
Italy
+39 041 234 9170 (Phone)
+39 041 234 9176 (Fax)

Michele Costola

Ca' Foscari University of Venice ( email )

Cannaregio 873
Venice, 30121
Italy

Iva Hristova

Ca' Foscari University of Venice ( email )

Carmelo Latino

Leibniz Institute for Financial Research SAFE ( email )

(http://www.safe-frankfurt.de)
Theodor-W.-Adorno-Platz 3
Frankfurt am Main, 60323
Germany

Loriana Pelizzon

Leibniz Institute for Financial Research SAFE ( email )

House of Finance
Theodor-W.-Adorno-Platz 3
Frankfurt, 60323
Germany

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