Climate innovations in the financial sector
(2020) EKHS34 20201Department of Economic History
- Abstract
- A green transition requires to drive public and private capital towards investments in line with environmental norms. Scholars are constantly looking into the performances of sustainable finance and how to measure them. Yet, the perspective from financial firms on climate finance has hardly been studied. This research addresses this gap by offering a qualitative analysis of Swedish financial firms’ incorporation of climate-related risks (CRR) into their financial analysis. The study consists of the interview of eight representatives of Swedish asset management firms and institutional investors. After describing how firms consider CRR, an analysis of the position of the firms in regards to the green transition is presented based on an... (More)
- A green transition requires to drive public and private capital towards investments in line with environmental norms. Scholars are constantly looking into the performances of sustainable finance and how to measure them. Yet, the perspective from financial firms on climate finance has hardly been studied. This research addresses this gap by offering a qualitative analysis of Swedish financial firms’ incorporation of climate-related risks (CRR) into their financial analysis. The study consists of the interview of eight representatives of Swedish asset management firms and institutional investors. After describing how firms consider CRR, an analysis of the position of the firms in regards to the green transition is presented based on an adapted version of the three domains from Grubb, Hourcade, and Neuhoff (2014). Their framework is useful to understand decisions according to behavioral, neoclassical, and evolutionary theories. We found that the consideration for risks is shifting towards long-term perspectives with transition risks deemed more important than physical risks. The participants in our study showed signs of entering the transition, led by governmental investors and relying on international instruments to provide information and models. They mostly consider that CRR have not materialized yet and thus favor engagement strategies over divestments. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9030107
- author
- Pollak, Aurélie LU
- supervisor
-
- Seán Kenny LU
- organization
- alternative title
- The incorporation of climate-related risks into the financial analysis of Swedish institutional investors and asset managers
- course
- EKHS34 20201
- year
- 2020
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Climate-related risks, Sweden, Financial risks, Financial innovation, Evolutionary theory
- language
- English
- id
- 9030107
- date added to LUP
- 2021-06-24 13:10:34
- date last changed
- 2021-06-24 13:10:34
@misc{9030107, abstract = {{A green transition requires to drive public and private capital towards investments in line with environmental norms. Scholars are constantly looking into the performances of sustainable finance and how to measure them. Yet, the perspective from financial firms on climate finance has hardly been studied. This research addresses this gap by offering a qualitative analysis of Swedish financial firms’ incorporation of climate-related risks (CRR) into their financial analysis. The study consists of the interview of eight representatives of Swedish asset management firms and institutional investors. After describing how firms consider CRR, an analysis of the position of the firms in regards to the green transition is presented based on an adapted version of the three domains from Grubb, Hourcade, and Neuhoff (2014). Their framework is useful to understand decisions according to behavioral, neoclassical, and evolutionary theories. We found that the consideration for risks is shifting towards long-term perspectives with transition risks deemed more important than physical risks. The participants in our study showed signs of entering the transition, led by governmental investors and relying on international instruments to provide information and models. They mostly consider that CRR have not materialized yet and thus favor engagement strategies over divestments.}}, author = {{Pollak, Aurélie}}, language = {{eng}}, note = {{Student Paper}}, title = {{Climate innovations in the financial sector}}, year = {{2020}}, }