Library | ESG issues
Systemic Risk Management
Systemic risk refers to the possibility that an event at the company level could trigger severe instability or collapse in an entire industry or economy. It extends beyond individual failures, encompassing large-scale threats such as climate change, natural disasters, inflation, geopolitical crises, and pandemics. Effective systemic risk management requires proactive monitoring, regulatory safeguards, and resilience strategies to mitigate risks and ensure financial stability in an increasingly complex and uncertain global landscape.
Refine
438 results
REFINE
SHOW: 16
Climate risk in financial markets: A quantitative framework
Climate change is an immediate macro-financial force reshaping global markets. Using a quantitative framework, this research demonstrates that a 3°C warming scenario could increase the equity risk premium by 15–25% and temporarily depress real risk-free rates. It highlights structural implications for long-duration asset valuations and global financial stability.
The financial materiality of sustainability issues
This report synthesises research demonstrating the financial materiality of ESG factors for investment outcomes. It highlights that managing sustainability, governance, environmental, and social issues supports long-term value. Evidence shows that ESG integration, board diversity, and active stewardship enhance corporate performance while mitigating systemic risks to the Australian economy.
Property insurance and disaster risk: New evidence from mortgage escrow data
This report analyses homeowners insurance premiums using mortgage escrow data from 2014 to 2024. It documents rapid premium increases and a doubling of the risk-to-premium gradient, driven by global reinsurance costs. These rising costs have significant impacts on home values, particularly in areas facing high climate risk.
The legibility problem across real assets: Adaptation and resilience finance without a shared language
This research examines the fragmented definitions of climate adaptation and resilience within finance and real assets. It identifies structural disagreements between regulatory frameworks and highlights five institutional gaps, including valuation and governance, that hinder large-scale investment. The paper advocates for improved institutional architecture to address systemic climate risks.
The resilience spread: How climate change is reshaping regional economies
This report analyses 426 global cities to define the "resilience spread" between economic capacity and climate risk. It finds that climate pressures currently impact 30% of cities negatively and could erode USD 2.5 trillion in global productivity by 2100 without significant adaptation investment.
Trade finance: How volatile financial conditions influence its availability and impact trade levels
This joint report by the IFC and WTO explores how global financial volatility constrains trade finance availability, particularly in emerging markets. Utilising ICC data, the study demonstrates that increased uncertainty and lower financial development hinder trade growth. It advocates for policy responses to enhance shock resilience in developing economies.
Nature-related financial risks and central bank risk management
This research examines how nature-related risks affect the financial system and central bank risk management. It provides empirical evidence of biodiversity risk pricing in Eurozone corporate bonds and proposes a four-stage framework—identification, assessment, mitigation, and disclosure—to help central banks protect their balance sheets and maintain financial stability.
Nature at risk: Implications for the euro area economy and financial stability
This report assesses euro area economic and financial risks from ecosystem degradation. Using the Nature Value-at-Risk framework, it identifies water-related risks as most material, with surface-water scarcity potentially exposing 24% of output. The findings highlight significant feedback loops and the urgent need for bank nature-related stress tests.
Nature stress test: Assessing exposure of five African banking systems
This report evaluates nature-related financial risks for banking systems in Ghana, Mauritius, Morocco, Rwanda, and Zambia. It demonstrates that an orderly transition to nature-positive practices significantly reduces profit and credit losses. Key sectors like agriculture and mining are most vulnerable, requiring coordinated regulatory and financial action.
Living in a world of disappearing nature: Physical risk and the implications for financial stability
This European Central Bank report analyses the financial stability risks of biodiversity loss in the euro area. It reveals that 75% of corporate loans are highly nature-dependent. Under adverse scenarios, potential bank losses from ecosystem degradation could nearly triple compared to sustainability-aligned pathways.
Nature-related financial risks: A conceptual framework to guide action by central banks and supervisors
This NGFS report provides a conceptual framework for central banks and supervisors to assess nature-related financial risks. It defines physical and transition risks and outlines a three-phase approach for risk identification, economic assessment, and financial system impact. Illustrative cases on the Amazon and Colorado River demonstrate the framework’s application.
How DFI private capital mobilisation can support local capital market development in Africa
This report examines how development finance institutions (DFIs) can mobilise private capital to strengthen African local capital markets. It details six key interventions, including anchoring issuances and technical assistance. It further provides a country classification framework to help DFIs prioritise engagement in markets with the greatest potential for scale.
Commodity Markets Outlook: October 2026
This World Bank report examines the historic energy supply shocks caused by the Middle East conflict and hostilities in Ukraine. Overall commodity prices are projected to rise by 23 per cent in 2026, with energy prices surging 32 per cent and metals reaching record highs. Risks remain tilted towards higher prices.
Integrating nature into macroeconomic models
This report summarises a workshop of 35 experts discussing the integration of nature into macroeconomic models. It highlights that current nature-blind frameworks misprice risks and undervalue natural capital. Through case studies and transmission channel mapping, it identifies practical ways to embed ecological assets into core economic decision-making processes.
Food, land, and money: The case for ending the Agribusiness Financial Complex and funding the Peoples’ Food Web
This report examines the 'Agribusiness Financial Complex', where global finance and industrial agribusiness prioritise shareholder profit over food security. It analyses the top 100 agrifood companies, highlights the environmental and social harms of financialisation, and advocates for a transition to a decentralised 'Peoples' Food Web' through agroecology.
The East and Southeast Asia green central banking scorecard series
This benchmark series assesses the integration of environmental considerations into the policies of thirteen central banks and financial supervisors across East and Southeast Asia. Evaluating the ASEAN Plus Three grouping, it provides a factual framework for tracking regional progress and identifying leadership in the development of green finance strategies.
