Background and Motivation
Climate change is no longer solely an environmental concern but a defining force in global business strategy, finance, and governance. As organisations worldwide face increasing physical and regulatory climate risks, understanding how these factors influence corporate behaviour, investment decisions, and market stability has become critical. This special issue of China Finance Review International brings together eight pioneering studies to explore the multifaceted relationship between climate change and business. The collection addresses urgent questions about how firms access capital, manage risk, leverage opportunities, and navigate policy shifts in an era of climate uncertainty.
Methodology and Scope
Rather than presenting a single study, this editorial synthesises findings from a diverse set of empirical and theoretical papers. Research methods include quantitative analysis of firm-level data, textual analysis of corporate reports, sentiment modelling, and macroeconomic policy evaluation. Geographically, studies span emerging Asian economies, China, and global markets. Thematically, the issue examines state capital influence, regulatory impacts, climate opportunity exposure, ESG performance, policy uncertainty, and the intersection of climate risk with cryptocurrency markets.
Key Findings and Contributions
Why It Matters
This body of research highlights that climate change is reshaping financial markets, corporate valuation, and investment logic. It demonstrates that climate factors are now embedded in capital allocation, risk pricing, and strategic decision-making. The findings are especially relevant as countries adopt standards like IFRS S2 for climate-related disclosures. They also reveal the growing interconnectedness of climate stability and financial stability—even in emerging digital asset classes.
Practical Applications
Discover high-quality academic insights in finance from this article published in China Finance Review International . Click the DOI below to read the full-text!
China Finance Review International
News article
Guest editorial: Climate change and business: challenges and innovations
11-Nov-2025