A paper by researchers from the Grantham Research Institute at LSE has been awarded the Best Paper Prize at the 6th annual conference of the Global Research Alliance on Sustainable Finance and Investment (GRASFI). Read more
financial risk
This working paper presents evidence that litigation reduces firm value. This means that climate litigation should be considered a relevant financial risk by lenders, financial regulators and governments. Read more
In order to assess these imbalances, Miller et al (2023) estimate the demand for metals induced by the NGFS climate scenarios and outline the potential implications in terms of macro-financial vulnerabilities. Read more
This paper empirically estimates the material demand requirements for so-called ‘transition-critical materials’ (TCMs) implied under two climate scenarios and finds potentially serious supply ‘bottlenecks’ for three materials – copper, lithium and nickel – which are exacerbated if the transition is delayed. Read more
Containing global temperature rise to well below 2°C would require keeping a large proportion of existing fossil fuel reserves in the ground. This would result in fossil fuel resources that cannot be burned and fossil fuel infrastructure that is no longer used – these are known as ‘stranded assets’. Read more
The authors of this paper discuss qualitative, empirical, modeling, policy, and institutional research and identify priorities for future research. Read more
This paper outlines three perspectives on the emerging concept of double materiality, along with their implications for monetary and financial policy and the challenges they raise in theory and practice. Read more
This paper proposes an alternative, precautionary approach to financial policy that justifies bolder action in response to environmental-related financial risks. Read more
Biodiversity loss poses a significant and under-appreciated threat to financial stability, and central banks and financial supervisors should act to confront nature-related risks, according to a new report published today (24 March 2022) by a group of central bankers, financial supervisors and academic researchers. Read more
