The climate-related financial risks measurement methodologies: Advances, challenges, and frontiers

Annarita Trotta, Fabio Piluso, Eugenia Strano and Danilo Ceraso

Research in International Business and Finance, 2025, vol. 79, issue C

Abstract: In recent years, the academic and policy community has been paying more attention to climate-related financial risks as a result of the recognition of climate change as a major source of risk for the financial system. Nevertheless, the measurement methodologies of climate-related financial risks still have significant gaps. This article provides an overview of the methods and approaches currently available for measuring climate-related financial risks, with the aim of pointing out their advantages and disadvantages as well as the progress made in the field. Furthermore, the study results shed new light on existing knowledge, contributing to the emerging literature on the measurement of climate-related financial risks, with implications for scholars, practitioners, policy-makers, and standard setters.

Keywords: Climate-related financial risks; Measurement methodologies; Climate finance; Stress testing; Scenario analysis; Sensitivity analysis (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0275531925003101
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:79:y:2025:i:c:s0275531925003101

DOI: 10.1016/j.ribaf.2025.103054

Access Statistics for this article

Research in International Business and Finance is currently edited by T. Lagoarde Segot

More articles in Research in International Business and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().