Research Archive

Six small coloured hexagon tiles arranged in a larger hexagon bearing icons representing different aspects of environment, social and governance issues. A seventh tile reading 'ESG' is being placed by someone's hand.
Research| February 8, 2024

Do Debt Investors Care About ESG Ratings?

Downgrades to ESG ratings increase the cost of debt for US listed firms, with spillover effects for unlisted ones, says this ECB working paper.

Published by European Central Bank
Large ocean waves crashing against a row of houses
Research| September 4, 2023

Climate Change and Sovereign Risk

Climate change creates substantial sovereign credit risks which should be reflected in banks’ capital provisions and central banks’ prudential policy and risk management.

Published by European Central Bank
Bank notes of various currencies laid out flat and overlapping
Research| August 31, 2023

Rising Temperatures, Falling Ratings

The Effect of Climate Change on Sovereign Creditworthiness

Researchers show that climate-induced sovereign downgrades will occur by 2030, and how climate-smart policies could curb the impact on debt-servicing costs.

Published by Management Science
A woman in a red sari stands on a conrete surface, holding a solar panel unit. Behind her, green fields stretch into the distance towards hills and mountains.
Research| August 14, 2023

Reforming the Multilateral Financial Architecture

Why, How and the Case for Acting Now

Multilateral development finance is unable to meet present economic and sustainability challenges, says this paper which outlines reforms for development banks to bridge financing gaps in the global south.

Published by United Nations Principles For Responsible Investment Association
A weather map of the western United States, coloured differnt shades of red, dark red and purple to indicate different temperatures ranging from 94F to 124F
Research| June 23, 2023

Feeling the Heat

Climate Risks and the Cost of Sovereign Borrowing

Climate change is placing fiscal health under threat, say macroeconomic researchers, and policymakers must ramp up investment in climate change resilience to avoid adverse effects on financial stability.

Published by Asian Development Bank Institute
Aerial landscape of Drax power station polluting the atmosphere with carbon dioxide emissions
Research| April 4, 2023

Carbon Default Swap

Disentangling the Exposure to Carbon Risk Through CDS

Researchers develop an innovative risk proxy that can be used to assess how carbon risk exposure influences firms’ creditworthiness on a granular level. The results show that carbon risk is a determinant of credit risk.

Published by Grantham Institute
Road sign saying 'Electric vehicle charging only'
Research| April 26, 2022

Climate Roadmap: Now What?

Next Steps for the ECB to Support the Low-Carbon Transition

This policy document from 17 major civil society groups outlines four core principles and five key recommendations on how the ECB can accelerate its climate action and reduce fossil fuel inflation.

Published by Positive Money Europe and others

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