Climate Risk Assessment in the European Banking Sector: A Systematic Literature Review and Managerial Perspective

This work revolves around the topic of climate risks and their developments within the European Banking sector. More precisely, the way they are assessed, integrated and mitigated through risk management procedures, in line with regulatory and stakeholders expectations. This paper through the means of a systematic literature review (SLR), examines the academic field and its state of art, finalized to find guidance and to highlight strategic implications. The SLR uses as an input an Excel spreadsheet composed of scientific articles that went through several filters to guarantee coherence and relevance to the themes. It is composed by peer-reviewed articles, reports and regulatory frameworks that shed light into climate-related financial risks (physical risk, transition risk) and assessment tools useful to banking managers decision-making and strategic planning activities. Therefore, the link between the emerging themes and their concretization into risk management processes represent the final goal of this work.