Are banks aware of climate change risks? To answer this question, we use daily data from the stock indices of global and G20 banks over the period from 03 January 2011 to 29 November 2019. We find that climate change risks impact banks’ stock market performance. However, banks’ responses...

To the question of whether global stock market indices are sensitive to climate change, the answer is “Yes”. Using weekly data from the stock market returns of 97 countries over the period from 31 August 2020 to 18 April 2022, we document a significant negative impact of climate change on...