Do firms care about climate change risks? Survey evidence from Italy

This paper presents the findings of an exploratory survey on climate change risk management at Italian non-financial corporations, which was carried out by Banca d’Italia in 2024. The survey reveals heterogeneity and some shortfalls in emission and physical risk management, transition planning and governance, highlighting significant differences with the results expected on the basis of the available sectoral data. Granular firm-level data allow for a more accurate assessment of firms’ climate-related risks and of the impact on their creditworthiness. We find that many firms without insurance against physical risk tend to underestimate it. Moreover, gaps in governance structure and differences across sectors and regions contribute to heterogeneity in climate risk management. Sustainability commitments alone do not necessarily improve firms’ creditworthiness evaluation unless backed by measurable progress. The gathered evidence, given the importance of individual emission data in capturing firm-specific risks that sectoral averages fail to reflect, will be used to enhance the evaluation of climate change risks within the Banca d’Italia In-house Credit Assessment System.