The impacts of climate change risks on financial performance of mining industry: Evidence from listed companies in China

Yong, Sun; Yang, Ying; Huang, Nan; Zou, Xin

doi:10.1016/j.resourpol.2020.101828

Cited by 81 publications

(45 citation statements)

References 13 publications

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“…Activities such as agriculture, forestry, fishing, and mining are directly affected by extreme climate events because these industries are vulnerable to climate change. Industries which are less dependent on the natural environment are also affected by climate change because the market can link all sectors (Sun et al, 2020). As a result, climate change risks have a wide-ranging impact on manufacturing activity in all types of industries, either directly or indirectly.…”

Section: Literature Reviewmentioning

confidence: 99%

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The Impacts of Climate Change Risks on Financial Performance: Evidence from Listed Manufacturing Firms in Vietnam

GIANG¹,

HANH²,

HIEN³

et al. 2021

Proceedings of the International Conference on Emerging Challenges: Business Transformation and Circular Economy (ICECH 2021)

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Adverse climatic conditions increase greater systematic risk for companies throughout the global economy. Only a few studies directly examine the consequences of climate-related risk on financial performance of publiclylisted firms across the globe especially in Vietnam. The manufacturing industry is one of the sectors most significantly affected by climate change because it is characterized by high exposure, sensitivity and substitution. Research purpose:This study focuses on examining the impact of climate change risks on the financial performance of manufacturing enterprises in Viet Nam. Research motivation:Adverse climatic conditions increase greater systematic risk for companies throughout the global economy. Only a few studies directly examine the consequences of climate-related risk on financial performance of publiclylisted firms across the globe especially in Vietnam. The manufacturing industry is one of the sectors most considerably affected by climate change because it is characterized by high exposure, sensitivity and substitution. Research design, approach and method:This study uses both quantitative and qualitative methods, applying an econometric regression model to examine the relationship between climate change risk and firm performance through control variables. After that, we develope a hypothesis and methodology to analyze how climate change can affect financial performance. The data is obtained from the financial statements of 144 listed companies between 2015 and 2019. Main findings:Empirical analysis shows that there is a correlation between climate change and the financial performance of manufacturing companies. The results indicate that climate change has a negative impact on financial performance. Humidity risk has a significant and negative correlation with the financial performance of companies. However, some independent variables such as temperature, sunshine hours, or rainfall show negligible impacts on financial performance. Practical/ managerial implications:This research will help businesses and practitioners be aware of the direct impact of climate change on firm performance. Therefore, in order to cope with the climate change risks, manufacturing enterprises need to develop action plans in response.

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Section: Literature Reviewmentioning

confidence: 99%

“…The factors affecting the financial performance of the manufacturing industry mainly focus on organizational factors, climate change factors and social factors in the existing studies (Sun et al, 2020). The health of the economy depends heavily on the development of the manufacturing sector.…”

Section: Introductionmentioning

confidence: 99%

The Impacts of Climate Change Risks on Financial Performance: Evidence from Listed Manufacturing Firms in Vietnam

GIANG¹,

HANH²,

HIEN³

et al. 2021

Proceedings of the International Conference on Emerging Challenges: Business Transformation and Circular Economy (ICECH 2021)

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“… 1 Among a large strand of literature on the adverse ecological effects, some studies point to the negative impacts of climate change on agriculture ( Pinkse and Gasbarro, 2019 ) and the financial performance of industries ( Sun et al, 2020 ). …”

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confidence: 99%

Climate bond, stock, gold, and oil markets: Dynamic correlations and hedging analyses during the COVID-19 outbreak

Dutta

Bouri

Noor³

2021

Resources Policy

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Adverse ecological effects have recently generated several eco-friendly investment opportunities including green and climate bonds. Although climate bonds have emerged as an appealing investment, little is known about their dynamic correlations and market linkages with US equities, crude oil, and gold markets, especially during stress times such as the COVID-19 outbreak, which are essential for asset allocation and hedging effectiveness. In this paper, we report time-varying correlations between climate bonds and each of the markets considered, which intensify during the COVID-19 pandemic. On average, climate bonds are negatively associated with US equities and have a near zero correlation with crude oil, whereas they are positively associated with gold. There is a bidirectional volatility linkage between climate bonds and the three indexes under study, whereas return linkages are marginal. The hedge ratio is positive for bond-gold, whereas it switches between positive and negative states for bond-stock and bond-oil, especially it switches more extremely during the COVID-19 outbreak. Although climate bonds provide the highest risk reduction in a portfolio containing US equities or gold as a part of a hedging strategy, their hedging effectiveness is considerably reduced during the pandemic. The findings have implications for markets participants aiming to green their portfolios and make them robust during stress times, enabling a smooth and speedy transition to a low-carbon economy.

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“…Food security and the coastal community's future life quality depend on sea products [15,8,4]. Problems emerged due to climate change are complex and directly and indirectly affect other related sectors [35].…”

Section: Climate Change Impacts In Indonesiamentioning

confidence: 99%

Indonesian Government Mitigation Efforts towards Climate Change in the Marine and Fisheries Sector

Atmaji

Purnomo

Fatahni

2021

JESBS

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Aims: This study aims to determine the Indonesian Government's mitigation efforts in dealing with climate change, especially in the marine and fisheries sector. Study Design: Literature study model. Place and Duration of Study: Yogyakarta, Indonesia; 2020-2021. Methodology: This study method utilized a qualitative approach with a literature study model. Sixty scientific national and international journals, online mass media, and legislations were collected. Data sources were used to explain the mitigation policy analysis of climate change in the marine and fisheries sector. The study stages started from article searching, theme classification, literature mapping based on discussions of various scientific journals, books, and online mass media with different orientations, data analysis, interpretation, and data presentation. Results: The results of the study reveal that the impact of climate change on the marine and fisheries sector is very significant so that the Indonesian government establishes various policies, undertakes mitigation efforts to strengthen its identity as a maritime country, eradicates illegal, unreported, unregulated (IUU) fishing, imposes a moratorium on ex-foreign ships, accelerates the growth of national economy, enhance food sovereignty and promote the development of maritime and marine economies. However, there are still problems in implementing policies, so it is necessary to improve the management system for climate change countermeasures in the marine and fisheries sector in Indonesia. Conclusion: Mitigation strategies in the marine and fisheries sector in Indonesia that can be implemented include applying sustainable aquaculture management practices suitable for carrying capacity and developing an integrated cultivation system. Various climate change mitigation policies in the marine and fisheries sector of the Government of Indonesia are commendable given many recognized successes, but there are still many problems with policy implementation. Ineffective application of policies is due to the government's focus on tackling climate change based on forestry and energy sectors, weak application of laws, and other problems. There is still a need for improvement in the management system for climate change countermeasures in Indonesia's marine and fisheries sector.

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The impacts of climate change risks on financial performance of mining industry: Evidence from listed companies in China

Cited by 81 publications

References 13 publications

The Impacts of Climate Change Risks on Financial Performance: Evidence from Listed Manufacturing Firms in Vietnam

The Impacts of Climate Change Risks on Financial Performance: Evidence from Listed Manufacturing Firms in Vietnam

Climate bond, stock, gold, and oil markets: Dynamic correlations and hedging analyses during the COVID-19 outbreak

Indonesian Government Mitigation Efforts towards Climate Change in the Marine and Fisheries Sector

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