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

Author

Listed:
  • Francesca Colletti

    (Bank of Italy)

  • Francesco Columba

    (Bank of Italy)

  • Manuel Cugliari

    (Bank of Italy)

  • Alessandra Iannamorelli

    (Bank of Italy)

  • Paolo Parlamento

    (Bank of Italy)

  • Laura Tozzi

    (Bank of Italy)

Abstract

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.

Suggested Citation

  • Francesca Colletti & Francesco Columba & Manuel Cugliari & Alessandra Iannamorelli & Paolo Parlamento & Laura Tozzi, 2025. "Do firms care about climate change risks? Survey evidence from Italy," Mercati, infrastrutture, sistemi di pagamento (Markets, Infrastructures, Payment Systems) 70, Bank of Italy, Directorate General for Markets and Payment System.
    • Handle: RePEc:bdi:wpmisp:mip_070_25
    as

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    File URL: https://www.bancaditalia.it/pubblicazioni/mercati-infrastrutture-e-sistemi-di-pagamento/approfondimenti/2025-070/N.70-MISP.pdf
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    References listed on IDEAS

    as
    1. Irene Monasterolo, 2020. "Climate Change and the Financial System," Annual Review of Resource Economics, Annual Reviews, vol. 12(1), pages 299-320, October.
    2. Faiella, Ivan & Lavecchia, Luciano & Michelangeli, Valentina & Mistretta, Alessandro, 2022. "A climate stress test on the financial vulnerability of Italian households and firms," Journal of Policy Modeling, Elsevier, vol. 44(2), pages 396-417.
    3. Di Virgilio, Stefano & Faiella, Ivan & Mistretta, Alessandro & Narizzano, Simone, 2024. "Assessing credit risk sensitivity to climate and energy shocks: Towards a common minimum standards in line with the ECB climate agenda," Journal of Policy Modeling, Elsevier, vol. 46(3), pages 552-568.
    4. Filippo Giovannelli & Alessandra Iannamorelli & Aviram Levy & Marco Orlandi, 2020. "The In-house credit assessment system of Banca d'Italia," Questioni di Economia e Finanza (Occasional Papers) 586, Bank of Italy, Economic Research and International Relations Area.
    5. repec:bdi:wptemi:mip_053_24 is not listed on IDEAS
    6. James Rising & Marco Tedesco & Franziska Piontek & David A. Stainforth, 2022. "The missing risks of climate change," Nature, Nature, vol. 610(7933), pages 643-651, October.
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • C83 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Survey Methods; Sampling Methods

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