IDEAS home Printed from https://ideas.repec.org/a/taf/jsustf/v16y2026i3p755-783.html

No need to worry? Estimating the exposure of the German banking sector to climate-related transition risks

Author

Listed:
  • Paola D'Orazio
  • Tobias Hertel
  • Fynn Kasbrink

Abstract

Climate change poses several risks to the value of financial assets and financial stability. The study conducted in this paper focuses on the German banking sector and estimates its exposure to climate risks arising from a transition to a carbon-neutral economy. Our analysis identifies the energy, transportation, and manufacturing sectors as the most sensitive to transition risks. It shows that the German banking sector's direct exposure to climate transition risks is non-negligible. Moreover, it indicates that an amplified exposure to transition risks characterizes large private banks. These findings are comparable to other countries exposures and relevant to financial supervision and regulation, calling for increased engagement to assess, measure, and manage climate-related financial risks.

Suggested Citation

  • Paola D'Orazio & Tobias Hertel & Fynn Kasbrink, 2026. "No need to worry? Estimating the exposure of the German banking sector to climate-related transition risks," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 16(3), pages 755-783, July.
    • Handle: RePEc:taf:jsustf:v:16:y:2026:i:3:p:755-783
    DOI: 10.1080/20430795.2024.2336567
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/20430795.2024.2336567
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/20430795.2024.2336567?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jsustf:v:16:y:2026:i:3:p:755-783. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TSFI20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.