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Meta-analysis reveals reduced profitability from climate risk in global firms, highlighting the necessity of accounting for research variability in financial policy.
This study investigates the impact of climate risk on the financial performance of companies, focusing on return on assets (ROA). Climate risk poses significant challenges to the global economy, impacting livelihoods, economic activities, and financial stability. The research uses meta-regression methods to analyse existing research variability and finds a generally negative correlation between climate risk and corporate performance. However, the magnitude of these effects varies due to contextual inconsistencies and publication bias. Recognising variability in research is crucial for effective risk management and policy-making in the financial industry.
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Kathiravan et al. (2026) studied this question.
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