IDEAS home Printed from https://ideas.repec.org/a/wly/intsec/v20y2025i4p374-389.html

Can National ESG Inhibit the Impact of Extreme Climate on Global Financial Risks?

Author

Listed:
  • Haonan Wang
  • Lichao Zhou
  • Jinhui Xu
  • Jingqun Shan

Abstract

This study investigates the impact of extreme climate events on global systemic financial risk, utilizing a dataset of 32 representative economies from 2004 to 2019. By constructing a Climate Risk Index and a systemic financial risk index (RISK), our findings reveal that extreme climate change significantly exacerbates global systemic financial risk. We find this effect to be particularly pronounced in developing countries. Furthermore, our analysis reveals that country‐level ESG performance can effectively mitigate the adverse impact of extreme climate events, with the environmental (E) dimension exhibiting the most prominent moderating effect. We also find that the mitigating efficacy of ESG is conditioned by national cultural values. In addition, this research uncovers a significant synergistic effect between ESG performance and robotics adoption, highlighting a cross‐domain strategic complementarity that plays a crucial role in enhancing the resilience of the financial system.

Suggested Citation

  • Haonan Wang & Lichao Zhou & Jinhui Xu & Jingqun Shan, 2025. "Can National ESG Inhibit the Impact of Extreme Climate on Global Financial Risks?," International Studies of Economics, John Wiley & Sons, vol. 20(4), pages 374-389, December.
    • Handle: RePEc:wly:intsec:v:20:y:2025:i:4:p:374-389
    DOI: 10.1002/ise3.70027
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/ise3.70027
    Download Restriction: no
    File URL: https://libkey.io/10.1002/ise3.70027?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
    ---><---

    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:wly:intsec:v:20:y:2025:i:4:p:374-389. 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: Wiley Content Delivery (email available below). General contact details of provider: .

    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.