The Relationship Between Climate Change and Financial Stability

Climate change is the greatest challenge of the modern day with the capacity to destabilize global financial systems and socioeconomic welfare. This chapter explores the uncertainties posed by climate change, its effects on the economy, the risks associated with the phenomenon, and approaches to manage them through risk management. Using documented evidence, climate change is shown to result in gross domestic product reductions; physical, transition, and liability risks that result to systemic financial problems characterized by liquidation of companies, losses for, and closure of financial firms and their intermediaries; and inability of investors to pay debts. Climate risk management is proposed as a solution to adapt to climate change and reduce its associated risks.

Climate Change Accounting and Value Growth of Financial Institutions in West Africa

The study investigated the impact of climate change accounting on the value growth of financial institutions in West Africa. The study used 10 years of annual reports of 47 financial institutions in Ghana and Nigeria. The climate change disclosure scores were determined based on the task force's recommended components on climate-related financial disclosure. A panel data regression technique was used for the analysis. The study found a positive and significant relationship between climate change accounting and the value of financial institutions in West Africa. This result implies that the firms' value would improve should they concentrate and enhance their climate change disclosure activities. The findings also revealed that the impact of climate change accounting on the value of financial institutions is positively and significantly higher in countries with stronger investor protection. These findings enable us to expand our understanding of the process of generating value for investors in financial institutions and society, generally.

SDG 13 and Environmental Governance in the Nigerian Financial Sector

This chapter examines how the board of directors of financial organisations and the regulatory bodies have responded to climate change as it has occurred over time, with particular reference to the banking sector in Nigeria. It reflects on the Sustainable Development Goal (SDG) 13, which is about taking urgent action to combat climate change and its impacts by both banks and government regulatory organisations. The chapter is hinged on the triple-bottom line theory and considered various existing international environmental initiatives, and how Nigerian banks have responded to them. The chapter concludes that though a lot has been done by the Nigerian banks to act on initiatives towards climate change, there is more to be done on the part of the board of directors and the regulatory authorities of the listed banks considered.

Climate Change and Entrepreneurial Financing

Entrepreneurs in emerging and developing economies face many challenges curtailing their ability to finance and grow their business ventures. Climate change provides new opportunities for entrepreneurs to gain access to finance and contribute toward more climate-resilient economies. The objective of this chapter is to outline the dimensions of entrepreneurial financing that are sensitive to levels of climate change with emphasis on the financial services sector's role in reacting to these changes. An analysis of current extant literature will be explored, and evidence supporting effective entrepreneurial financing will be used to develop a theoretical framework for climate change and entrepreneurial financing to foster a more climatic conditions-sustainable economy. The literature in this chapter indicated the need for establishing the impact of climate change on entrepreneurial financing in the financial services sector in order to provide recommendations that can direct funding more effectively towards climate-resilient activities and a more climatic conditions-sustainable economy.

Revenues of the EU ETS Auctioning and Their Impact on Budgetary Allocation

This chapter offers insight into the role of EU ETS auction revenues from the perspective of a public sector and implementation of climate change policy rules. The final part of the chapter presents a detailed analysis of the Poland case in the years 2013-2019. The analyses conducted revealed that the revenues acquired from emission allowances auctioning impacted the state of public finance in Poland to a lesser degree than projected. At the same time, it was also revealed that the currently applied solution in Poland in terms of qualifying revenues from auctioning and spending funds in accordance with the provisions of Directive 2003/87/EC fails to be transparent and does not promote additionality of actions taken.

Nexus of Green Management, Green Marketing, Sustainability, and Financial Performance

Consumer and organizational awareness of environmental sustainability is ever increasing. In the era of global warming and climate change, organizations need to move away from traditional marketing strategies to green marketing strategies and green management to remain sustainable. The objectives of this chapter are to provide stakeholders with the overview and importance of green marketing, establish the link between green marketing mix and strategic green marketing, and reveal what organizations should focus on in developing green management to remain competitive and profitable. Green marketing strategies activities for financial services were highlighted, and lastly, the authors examined the impact of green management on firm financial performance. The chapter offers a holistic practice and recommendation of going green for both financial services and other businesses. Practical implications for managers were pointed out through commitment to green marketing and management to yield positive outcomes on firm financial performance in the long run.

Enterprise Risk Management and Climate Change

The global exposure to climate change-induced risks culminating in the alteration of known environmental order and its debilitating spin effects on the key economic units in which the financial sector plays the intermediation role has raised new levels of consciousness in tackling the phenomenon. To sustain stability of the financial sector and greening of its broad spectrum of activities, there is the need for an enterprise-wide risk approach better delivered through the enterprise risk management (ERM) model. This chapter, therefore, assesses the level of preparation of Nigeria's regulatory bodies and the financial sector on how best to tackle the emerging physical, transitory and indirect risks involved; it also captured the feelers of various stakeholders via responses to the questionnaire. Among other things, the authors recommend the greening of macro-prudential regulations, dynamic monetary policies, and overall framework for the financial sector to reflect the realities of climate change.

The Impact of Climate Change on Human Resource Management in the Global Economy

Climate change has a global impact on everyone in their homes and workplaces. It occurs naturally but is also human-induced. It does more bad than good, especially in the workplace of every industry. Human resource functions play a major role in addressing this issue with management structures, employees, customers, and other stakeholders. The effort of reducing climate change is not an easy task, as many still have no belief that it is actually occurring. This chapter seeks to define the human resource function and climate change concept within a global economy.

Sustainability and Green Operations Management

For over four decades now there has been global concerns emerging from environmental considerations. Sustainability was introduced subsequently as a concept to reconcile these environmental dynamics with other ‘pillars' of sustainable development (social and economic). These global concerns of the environment indicate the importance of green operations management towards optimal utilisation of organisational resources and sustainable management of the entirety of the systems. To this end, this chapter is aimed at providing a review and discussions on relevant historical literature on sustainability and green operations management.

Sustainability Tourism and Socio-Economic Development

The main purpose of this study is to assess sustainable tourism theoretically and practically in a systematic point of view and to provide guidance for future plans and policies related to sustainable tourism. In accordance with this purpose, firstly, the concepts of sustainability, sustainable tourism, and socio-economic development have been discussed, and secondly, the purpose, the principles, and the tools of sustainable tourism were evaluated. Within the scope of sustainable tourism, carrying capacity, environmental impact assessment, and ecological footprint phenomenon were examined.