Climate finance silence
Climate change is a hotly discussed topic globally, but not, it appears, among leading finance journals.
Associate Professor Ivan Diaz-Rainey (Accountancy and Finance) recently published an article Stranded research? Leading finance journals are silent on climate change.
His investigation into how much finance journals had published climate change research, funded by the Tyndall Centre for Climate Change Research in the UK, found the leading publications had little on climate finance topics.
The article has attracted a lot of online interest, with significant downloads, tweets and social media chatter. Altmetric scored it in the top five per cent of all research outputs.
Diaz-Rainey says it appears finance academics are doing little research in the area, largely because the top journals are unlikely to publish their work.
This is despite the fact that climate change presents both substantial risks to the global financial system and opportunities for investors.
He says there are major current debates around stranded fossil fuel assets, divestment from carbon-intensive stocks, the direct impact of climate change on assets, carbon markets, green investing and development finance, risk management strategies including climate insurance and broader financial stability risks.
In particular, the risk to business caused by the agreement to keep the increase in global average temperature to well below 2°C needs robust investigation.
“The fact that this isn’t being researched robustly at present creates a gap in knowledge and it impacts on teaching, as universities have no research to draw on to inform current students before they go out into the industry.”
Photo: Graham Warman