Financial Impact of Climate Risk and Green Finance: A Review of Meta-Analyses, Reviews, and Theory

Ricardo Alonzo Fernandez Salguero

No aqy84_v1, SocArXiv from Center for Open Science

Abstract: The growing interest in sustainability has generated a vast academic literature on the intersection of climate change, green finance, and financial markets. However, heterogeneity in methodologies and results often makes it difficult to draw unified conclusions. This paper presents a review of meta-analyses and systematic literature reviews to synthesize the current state of knowledge. By analyzing a corpus of 22 reviews, we assess the consensus on three key areas: 1) the impact of climate risk (physical and transition) on asset valuation, 2) the existence and magnitude of a green financing premium (the "greenium"), and 3) the effects of green finance practices on corporate and banking profitability. Our findings indicate an emerging consensus on the pricing of physical climate risk in the real estate market and a modest but persistent negative premium for green bonds. However, the impact of sustainable finance on financial profitability remains ambiguous and highly dependent on the methodological context. This synthesis consolidates quantitative findings, evaluates prevailing methodologies, identifies research gaps, and proposes an integration theory with an agenda for future research, highlighting the need for greater standardization in metrics and analytical approaches to strengthen the robustness of empirical conclusions.

Date: 2025-11-08
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://osf.io/download/690e56933c4f894c2b0c1405/

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:osf:socarx:aqy84_v1

DOI: 10.31219/osf.io/aqy84_v1

Access Statistics for this paper

More papers in SocArXiv from Center for Open Science
Bibliographic data for series maintained by OSF ().