Climate Risk in Financial Markets and Institutions

Dear Colleagues,

Climate risk plays an important role in influencing financial markets and institutions. Increasingly, investors, regulators, and policymakers are recognizing that climate-related risks—both physical and transition-related—can have profound impacts on asset valuations, portfolio allocation, risk-management practices, and the stability of financial systems.

In recent years, increasing research has been conducted around exploring how climate risk affects financial markets and institutions. However, research gaps still remain in regard to the quantitative analysis, modeling, and integration of climate risk into financial decision-making. The challenges in using climate-related information, future policy developments, and risk management require interdisciplinary approaches that combine finance, economics, data science, and environmental modeling.

This Special Issue aims to bring together high-quality theoretical and empirical contributions that will improve our understanding of how climate risk interacts with financial markets and institutions. We welcome original research articles and reviews that address the measurement, pricing, and management of climate risk across a range of financial sectors.

Topics for consideration in this Special Issue include, but are not limited to, the following:

• Climate risk and asset pricing;
• Portfolio strategies under climate risk;
• Climate risk disclosure and financial regulation;
• ESG integration and institutional investment;
• Climate stress-testing in banking and insurance;
• Traditional vs. renewable energy firms;
• Transition risk and financial stability;
• Physical risk exposure and firm valuation;
• Green bonds;
• Machine learning approaches to climate risk modeling;
• Interactions between climate policy and financial markets.

Dr. Chengbo Fu
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 250 words) can be sent to the Editorial Office for assessment.

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.