Investing in a Climate-Resilient World: The Role of Finance in the Climate Solution

Introduction

Investing in a climate-resilient world holds paramount significance in our era. Climate change is no longer a distant concern; it is a present reality with tangible consequences for our environment, economies, and societies. The urgent need to mitigate and adapt to the effects of climate change necessitates a fundamental shift in the way we allocate and manage financial resources. As a powerful and pervasive force in our globalized world, finance is uniquely positioned to drive this transition. It is pivotal in funding innovative green technologies, supporting climate adaptation measures, and incentivizing businesses to adopt sustainable practices. Moreover, it has the capacity to allocate capital toward projects that not only generate financial returns but also create positive environmental and social impacts. In a world where climate resilience is no longer optional but imperative, the role of finance is not merely about profit; it is also about shaping a better future for our planet and ensuring the well-being of the next generations.

Firms play a significant role in advancing the goals of investing in a climate-resilient world and addressing climate change. Their role is multi-faceted and extends across various dimensions such as (i) carbon emissions reduction by implementing energy-efficient practices, investing in renewable energy sources, and adopting sustainable supply chain strategies to lower their carbon footprint; (ii) sustainable business practices by integrating sustainability into their core business operations and aligning their operations with sustainable principles; (iii) disclosure and reporting by disclosing their environmental impact, climate-related risks, and strategies for mitigation and adaptation to help investors make informed decisions and encourage firms to be accountable for their actions; (iv) green finance by raising capital through green bonds and sustainability-linked financial instruments to fund projects and initiatives with clear environmental benefits; (vi) innovation and research by channeling resources into developing innovative technologies and solutions that contribute to climate resilience; (vi) engaging with shareholders on climate-related issues as many investors, including institutional investors and asset managers, are increasingly incorporating environmental, social, and governance (ESG) criteria into their investment decisions.

In this special issue of the Review of Accounting and Finance, we invite researchers, scholars, and practitioners to submit their original work for consideration for possible publication. Manuscripts could employ qualitative, quantitative, and mixed methods. All submissions will undergo a rigorous peer-review process to ensure the highest academic standards.

Submissions information

Submissions are made using ScholarOne Manuscripts. Author guidelines must be strictly followed.

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Author Guidelines

Authors should select (from the drop-down menu) the special issue title at the appropriate step in the submission process, i.e. in response to “Please select the issue you are submitting to”. Please select ‘Special Issue Article’ as the article type, and note in your cover letter that your manuscript should be considered for the “Investing in a Climate-Resilient World special issue.” Following submission, all manuscripts will be assigned to a handling editor and subject to double-blinded peer review.

Submitted articles must not have been previously published, nor should they be under consideration for publication anywhere else, while under review for this journal.

Key deadlines

Submissions open: 16th October 2023

Submissions deadline: 30th June 2024