CLIMATE CHANGE AND ITS IMPLICATIONS ON THE FINANCIAL RISKS
CLIMATE CHANGE AND ITS IMPLICATIONS ON THE FINANCIAL RISKS

Summary/Abstract: The purpose of this research is to prove that climate change has a potential impact on financial risks, as well as to show that companies and financial intermediaries recognize its importance. The survey questionnaire, conducted on a group of companies belonging to sectors with different percentages of greenhouse gas emissions, concluded that the companies in the Republic of North Macedonia, which operate in the targeted industries, are aware of climate change, as well as of the related risks and challenges, but do not do much in terms of measuring and reporting on the negative implications. The comparative analysis of corporate loan portfolios of the group of large banks in the Macedonian banking sector concluded that there is a significant exposure of the Macedonian banking sector to clients from the sectors that have been identified as greenhouse gas emitters. Hence, the importance of climate risks on the country’s financial system increases. The joint cooperation between the financial intermediaries and the companies, based on appropriate policies, can contribute to the improvement of the conditions that would have a positive impact on the climate and the environment, in general, and, in return, on the economic situation and financial stability

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