Institutional Investors’ Views and Preferences on Climate Risk Disclosure

2019 ◽  
Author(s):  
Emirhan Ilhan ◽  
Philipp Krueger ◽  
Zacharias Sautner ◽  
Laura T. Starks
Keyword(s):  
Institutional Investors ◽  
Climate Risk ◽  
Risk Disclosure

Information and Analytical Support for Sustainable Development of Companies Based on IFRS

Auditor ◽  
2021 ◽  
Vol 7 (11) ◽  
pp. 43-49
Author(s):  
S. Puchkova ◽  
Yu. Sotneva
Keyword(s):  
Sustainable Development ◽  
Climate Risk ◽  
Risk Disclosure ◽  
The Sustainable Development ◽  
Development Initiatives ◽  
Development Risks

The article focuses on the sustainable development initiatives and sustainable development standards, which are the bases of information-analytic analysis, helping investors to understand the IFRS’ role in climate risk disclosure and other sustainable development risks.

scholarly journals Make Markets Work for Resilience

2019 ◽  
pp. 56-76
Author(s):  
Hill and
Keyword(s):  
Real Estate ◽  
Large Scale ◽  
Insurance Companies ◽  
Climate Risk ◽  
Insurance Markets ◽  
Risk Disclosure ◽  
Climate Risks ◽  
Climate Resilience ◽  
Systemic Level ◽  
Bond Property

This chapter looks at how more transparent disclosure of climate risks can make markets work for resilience. In a world in which climate risk is reflected in the prices of assets traded in the market, everyone will be pressured to manage the risk and protect the value of their holdings. This chapter looks at four markets where we might expect climate risk disclosure to cause prices to change most readily: equities (company stocks), debt (bonds issued by companies and governments), property (real estate), and insurance. It argues that disclosure and better risk information can propel climate resilience at a systemic level, but it can also prove highly disruptive. Fear of disruption and its consequences has led different groups to throw sand into the gears to delay a day of reckoning, but that day is coming. If communities are unprepared, investors, banks, and insurance companies could panic and pull back indiscriminately from parts of the stock, bond, property, and insurance markets. The insights learned from these markets can illustrate how each could drive resilience on a large scale.

Expanded Climate Risk Disclosure Requirements by the Security and Exchange Commission

2021 ◽  
Vol 38 (2) ◽  
pp. 1-12
Author(s):  
David South ◽  
Kaitlyn Zolton ◽  
Andy Trump
Keyword(s):  
Climate Risk ◽  
Risk Disclosure ◽  
Disclosure Requirements

RELATIONSHIP BETWEEN CLIMATE RISK DISCLOSURE AND ABNORMAL RETURN OF BRASILIAN COMPANIES

2017 ◽  
Vol 13 (2) ◽  
pp. 149-165 ◽  
Author(s):  
Sônia Gomes ◽  
Daniel Koui ◽  
Adriano Bruni ◽  
Nverson Oliveira
Keyword(s):  
Abnormal Return ◽  
Climate Risk ◽  
Risk Disclosure

The Importance of Climate Risks for Institutional Investors

2020 ◽  
Vol 33 (3) ◽  
pp. 1067-1111 ◽  
Author(s):  
Philipp Krueger ◽  
Zacharias Sautner ◽  
Laura T Starks
Keyword(s):  
Risk Management ◽  
Institutional Investors ◽  
Risk Perceptions ◽  
Climate Risk ◽  
Climate Risks

Abstract According to our survey about climate risk perceptions, institutional investors believe climate risks have financial implications for their portfolio firms and that these risks, particularly regulatory risks, already have begun to materialize. Many of the investors, especially the long-term, larger, and ESG-oriented ones, consider risk management and engagement, rather than divestment, to be the better approach for addressing climate risks. Although surveyed investors believe that some equity valuations do not fully reflect climate risks, their perceived overvaluations are not large.

scholarly journals RISK DISCLOSURE ANALYSIS IN THE CORPORATE GOVERNANCE ANNUAL REPORT USING FUZZY-SET QUALITATIVE COMPARATIVE ANALYSIS

2016 ◽  
Vol 56 (3) ◽  
pp. 342-352 ◽  
Author(s):  
Pedro Carmona ◽  
Cristina de Fuentes ◽  
Carmen Ruiz
Keyword(s):  
Corporate Governance ◽  
Comparative Analysis ◽  
High Risk ◽  
Fuzzy Set ◽  
Institutional Investors ◽  
Annual Report ◽  
Qualitative Comparative Analysis ◽  
Sufficient Conditions ◽  
Risk Disclosure ◽  
Big Four

ABSTRACT This paper explores the necessary and sufficient conditions of good Corporate Governance practices for high risk disclosure by firms in their Corporate Governance Annual Report. Additionally, we explore whether those recipes have changed during the financial crisis. With a sample of 271 Spanish listed companies, we applied fuzzy-set qualitative comparative analysis to a database of financial and non-financial data. We report that Board of Directors independence, size, level of activity and gender diversity, CEO duality, Audit Committee independence, being audited by the Big Four auditing firms and the presence of institutional investors are associated with high risk disclosure. The conditions included in almost every combination are the presence of institutional investors and being audited by the Big Four. We found similar combinations for 2006 and 2012, while the analysis for 2009 showed the lowest number of causal configurations.

scholarly journals From Bushfires to Misfires: Climate-related Financial Risk after McVeigh v. Retail Employees Superannuation Trust

2021 ◽  
pp. 1-27
Author(s):  
Esmeralda Colombo
Keyword(s):  
Climate Change ◽  
Financial Risk ◽  
Pension Fund ◽  
Pension Funds ◽  
Climate Risk ◽  
Due Diligence ◽  
Risk Disclosure ◽  
Fiduciary Duties ◽  
Black Swans ◽  
Related Risk

Abstract The year 2020 proved to be a clarion call for global society. There is no longer doubt that increasingly we are experiencing unpredictable events, known as ‘black swans’, ranging from pandemics to financial meltdowns. One of the ’climate black swans’ against which experts have cautioned is the financial crisis caused by climate change. In this context, the Australian case of McVeigh v. Retail Employees Superannuation Trust for the first time tested climate risk and the fiduciary duties of retail pension funds. Settled in November 2020, the case has already raised the bar for climate risk practice in pension funds. In particular, McVeigh suggests that courts, as well as out-of-court settlements, may articulate a duty, rather than grant permission, for pension funds to consider climate-related financial risk in their investment decisions. The article builds on McVeigh to ask two questions. Firstly, what is the role of climate change litigation in promoting climate regulation by pension funds? Secondly, what is the relative importance of pension funds for the risk management of climate-related financial risk via due diligence compared with risk assessment via disclosure? Fundamentally, the article explains climate-related financial risk as a cultural phenomenon and argues that a discussion on pension fund fiduciary duties must consider disclosure in addition to due diligence. It argues that McVeigh articulated the need for a normative approach to pension fund disclosure duties and an extension of the field of climate-related risk disclosure to embrace climate-related risk due diligence.

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