Year: 2023
Type: article
Abstract: We investigate whether and how banks in the global syndicated loan market adjusted the pricing and supply of credit to account for higher climate transition risk (CTR) in the years following the 2015 Paris Agreement. We measure CTR by considering the pollution levels of borrowers and the engagement of countries where borrowers are headquartered in addressing climate change issues. The evidence is mixed and points to nonlinear relations between lending variables and CO2 emissions. Policy events such as the Paris Agreement and government environmental awareness are significant climate risk drivers that, when combined, may amplify banks' perception of CTR.
DOI: 10.1111/jfir.12360
Authors: Brunella Bruno, Sara Lombini
Institutions: Bocconi University, Politecnico di Milano
Language: English
Subfield: Finance
Domain: Social Sciences
SDG: Climate action
Open Access status: hybrid
Estimated APC paid: $3,140
OpenAlex ID: W4387955712