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

-related shocks on the financial system developing rapidly. This paper analyzes the conceptual steps in Climate Risk Stress Testing … approaches to CRST (macro-financial, micro-financial, non-structural, and disaster risk). We find that existing CRST exercises …

This paper analyses the exposure to climate risk of ABS, an asset class frequently pledged as collateral in the … and Medium Enterprises (SMEs) and explores ways to measure their climate risk based on the characteristics of the … computation of ABS climate related risk proxies. Without necessarily being able to measure a concrete impact, we carved a series …

We propose and implement a procedure to optimally hedge climate change risk. First, we construct climate risk indices … climate risk hedge portfolios. The new mimicking portfolio approach is much more efficient than traditional sorting or maximum … delivering markedly higher and statistically significant alphas and betas with the climate risk indices. …

the EU Sustainable Development Goals, this study aims to examine the impact of climate risk uncertainties (transitional … technological progress reduce ESG progress. This shows that the risk of climate change requires the introduction of stricter …

high ooding risk and test for the \core lending channel" hypothesis, whereby lending to the real economy is a catalyst of …

) approach to evaluating the hedging effectiveness of clean energy stocks. The out-of-sample forecast evaluations of the oil risk …-based and climate risk-based clean energy predictive models are explored using Clark and West's model (2007) and a modified … evidence that clean energy stocks may hedge against oil market risks. This result is robust to alternative measures of oil risk …

This paper investigates how political uncertainty affects firms’ climate risk premium from a global point of view. We … significant change in return premium for firms with different level of climate risk during the periods of political uncertainty …, we find that firms with higher climate risk experience much higher return volatility and return correlation amid …