Climate Risks: Business Scenarios and Financial Implications

A special issue of Risks (ISSN 2227-9091).

Deadline for manuscript submissions: 31 December 2024 | Viewed by 4531

Special Issue Editors


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Guest Editor
Faculty of Accounting and Management Information Systems, Bucharest University of Economic Studies, Bucharest, Romania
Interests: financial accounting; corporate governance; sustainability reporting; sustainable development goals (SDGs); integrated reporting; European Union taxonomy; circular economy
Special Issues, Collections and Topics in MDPI journals

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Guest Editor
Department of Financial Management, Metropolitan University Prague, Prague, Czech Republic
Interests: accounting; corporate finance; international trade; sustainability
Special Issues, Collections and Topics in MDPI journals

E-Mail Website
Guest Editor
Department of Accounting and Audit, Bucharest University of Economic Studies, Bucharest, Romania
Interests: management accounting; financial accounting; sustainability; circular economy; accounting education

Special Issue Information

Dear Colleagues,

This Special Issue is devoted to the dissemination of research on the modeling and management of climate risks in business. The most influential reporting standards at the global level, namely the IFRS Sustainability Disclosure Standards and the European Sustainability Reporting Standards, have included climate-related risks as a prominent topic of corporate sustainability disclosure. First, companies should identify whether they are subject to climate-related physical risks or transition risks. Second, companies should describe the resilience of their strategy and business models in relation to climate change. Finally, companies should evaluate and disclose the anticipated financial effects from material physical and transition risks, specifically for future cash flows, expenses and liabilities, and assets at risk.

The Special Issue will include high-quality, original research papers discussing theoretical modeling and applied solutions for tackling climate-related risks, with a focus on economic and business impacts. Research topics should address but are not limited to any of the following aspects:

  • Climate-related scenario analysis and alignment with state-of-the-art science in the domain.
  • Key forces and drivers to take into consideration in each scenario at the company and sector level.
  • Business policies related to climate change mitigation, climate change adaptation, energy efficiency and renewable energy deployment.
  • Business adaptability to climate change, e.g., the entity’s ability to redeploy, repurpose, upgrade, or decommission existing assets.
  • Design of risk management systems and strategies with a focus on climate-related risks.
  • Governance processes and stakeholder participation to identify, assess, prioritize, and monitor climate-related risks.
  • Modeling and quantifying climate-related risks in own operations and along the upstream and downstream value chain.
  • Acute and chronic physical risks arising from water and ocean-related hazards.
  • Biodiversity loss and ecosystem degradation caused by climate change in conjunction with business activities.
  • Social effects of climate-related risks (displacement, relocation, migration) and how companies can reduce the negative externalities of their business activities.
  • The link between climate-related risks and food security: applications for farming systems and technologies.
  • Flood risk, crop insurance and the impact of extreme weather events on business activities and survival, especially for small and medium-sized enterprises (SMEs).
  • Sustainable finance and the criteria for assessing climate-related risks within investment portfolios.
  • The importance of carbon assurance and verification for increasing public confidence in corporate efforts towards decarbonization.
  • Fintech and blockchain applications for addressing climate-related risks.

Prof. Dr. Voicu-Dan Dragomir
Dr. Irena Jindřichovská
Prof. Dr. Madalina Dumitru
Guest Editors

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Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Risks is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1800 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • climate-related risks
  • climate change mitigation
  • business scenarios
  • renewable energy deployment
  • biodiversity losses
  • water stress

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Published Papers (1 paper)

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Research

21 pages, 894 KiB  
Article
The Impact of Village Savings and Loan Associations as a Financial and Climate Resilience Strategy for Mitigating Food Insecurity in Northern Ghana
by Cornelius K. A. Pienaah and Isaac Luginaah
Risks 2024, 12(4), 58; https://doi.org/10.3390/risks12040058 - 25 Mar 2024
Cited by 8 | Viewed by 3557
Abstract
In semi-arid Northern Ghana, smallholder farmers face food insecurity and financial risk due to climate change. In response, the Village Savings and Loan Association (VSLA) model, a community-led microfinance model, has emerged as a promising finance and climate resilience strategy. VSLAs offer savings, [...] Read more.
In semi-arid Northern Ghana, smallholder farmers face food insecurity and financial risk due to climate change. In response, the Village Savings and Loan Association (VSLA) model, a community-led microfinance model, has emerged as a promising finance and climate resilience strategy. VSLAs offer savings, loans, and other financial services to help smallholder farmers cope with climate risks. In northern Ghana, where formal financial banking is limited, VSLAs serve as vital financial resources for smallholder farmers. Nevertheless, it remains to be seen how VSLAs can bridge financial inclusion and climate resilience strategies to address food insecurity. From a sustainable livelihoods framework (SLF) perspective, we utilized data from a cross-sectional survey of 517 smallholder farmers in northern Ghana’s Upper West Region to investigate how VSLAs relate to food insecurity. Results from an ordered logistic regression show that households with membership in a VSLA were less likely to experience severe food insecurity (OR = 0.437, p < 0.01). In addition, households that reported good resilience, owned land, had higher wealth, were female-headed, and made financial decisions jointly were less likely to experience severe food insecurity. Also, spending time accessing the market increases the risk of severe food insecurity. Despite the challenges of the VSLA model, these findings highlight VSLAs’ potential to mitigate food insecurity and serve as a financially resilient and climate-resilient strategy in resource-poor contexts like the UWR and similar areas in Sub-Saharan Africa. VSLAs could contribute to achieving SDG2, zero hunger, and SDG13, climate action. However, policy interventions are necessary to support and scale VSLAs as a sustainable development and food security strategy in vulnerable regions. Full article
(This article belongs to the Special Issue Climate Risks: Business Scenarios and Financial Implications)
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