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September 10, 2025Open Access

Climate Change and Women's Barriers to Credit: Global Firm‐Level Analysis of Gender Bias and Climate Risk Policy Thresholds

Key Points

Female CEOs promote credit access, but climate risk significantly reduces this advantage.
Over 38,500 firms in 130 countries were observed, showing robust evidence of gender bias in credit access.
Analysis utilized the Climate Physical Risk Index for assessing climate risk's impact on credit supply and demand.
Findings highlight the need for policy changes to mitigate climate risk effects on female entrepreneurs.

Abstract

ABSTRACT The purpose of this present study is to assess how climate risk mitigates the positive incidence of the female CEOs on credit access. Using the Climate Physical Risk Index (CPRI), we perform an empirical analysis on firm‐level data from over 38,500 firms in 130 countries observed over the period 2006–2020. We find that female entrepreneurs are more constrained in accessing credit when climate risk is high. Furthermore, we show that this negative effect manifests itself both in lower loan demand on the part of firms and in rationing of credit supply. Female CEOs promote access to credit while climate risk mitigates the underlying positive incidence. Avoidable climate risk thresholds in order to maintain the positive effect of female CEOs on access to credit are provided. Our results remain robust to a plethora of tests. Policy implications are discussed.

Climate Change and Women's Barriers to Credit: Global Firm‐Level Analysis of Gender Bias and Climate Risk Policy Thresholds

Key Points

Abstract

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