states, insurers increase rates in low friction states. Over time, rates get disjoint from underlying risk, and grow faster … in states with low pricing frictions. Our findings have consequences for how climate risk is shared in the economy and …

system in the low-carbon transition can lead to a large underestimation of climate transition risk. The set of scenarios that … financial supervisors recommended to investors to analyse climate transition risk include scenarios labelled as ‘disorderly … reshaped depending on the timing and the extent by which financial actors assess climate risk …

The Security and Exchange Commission (SEC) has considered climate change as a risk issue since 2010. Several emission … financial performances, especially of listed companies. There are two ways these companies can disclose their transition risk … exposure and are not alternatives. One is the explicit declaration of exposure to transition risk in the legally binding …

behind this pattern. Rates are least reflective of risk in states we classify as "high friction", i.e. states where …

important data gap. We focus on German banks and measure their exposure to climate risk using CO2 emissions reported for German … bank risk, and investigate the concentration of emissions, companies, and plants within the portfolios of German banks …

We exploit regional variations in exposure to heat stress to study if physical climate risk is priced in municipal and …

Climate change can be a source of financial risk. This paper examines how credit rating agencies accepted by the … Eurosystem incorporate climate change risk in their credit ratings. It also analyses how rating agencies disclose their … change risk, the transparency around models and methods used to estimate the exposure to climate change risk and the …

This study investigates how a firm's climate change risk (FCCR) and financial flexibility (FIFL) affect its value and … effects with Driscoll-Kraay standard errors. Our main findings indicate that climate change risk has a negative effect on firm … value and a positive effect on ESG performance and that financial flexibility moderates these effects by reducing risk and …

institutions and show that, unlike physical risk, transition risk significantly influences systemic risk. The exposure to … transition risk appears lower for institutions with cleaner investment and lending portfolios and with higher institutional …

, suggesting that this risk is somewhat unpredictable and undiversifiable. Furthermore, geographic dispersion increases firms …