Affiliation:
1. Universidade Europeia, Lisbon, Portugal
Abstract
The surface temperature of the Earth has increased, and it is evident that even greater warming is expected in the coming decade. Banks have to manage their financial exposure and support sustainable initiatives that are crucial in mitigating the impact of global warming. This study aims to identify the primary effects of integrating climate change into the management and the challenges faced by the financial sector. A comprehensive and systematic literature review was conducted, analysing articles published between January 2016 and March 2023, published in highly respected journals. The final selection consists of 14 articles that provide a comprehensive overview of the current state of research in this field. Numerous challenges were identified, including limitations on the action of central banks, the need for climate performance metrics, accurate and comprehensive data collection, techniques for measuring physical risks, structural adaptations, and the reformulation of strategies. Moreover, this study highlights potential avenues for future research.
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