Vol. 20, N°2 (2025)

52

39

Impact of Climate and Sustainability Risks (IFRS S1 and S2) on Financial Stability: Global Economic and Financial Prospects

Résumé

Previous studies have been conducted on the impact of climate risks and ESG on financial stability, but the gap in how climate change has not been explored, including the risks of transition, physical risks, or opportunities derived from the necessary energy sources. As well as the institution's management of factors related to sustainability disclosure requirements in accordance with new international standards. Institutional theory was used to identify factors affecting the financial stability gap in relation to climate and ESG risks. Quantitative testing and analysis of data content were conducted for a sample of 62 banks, where banks’ data were collected from Iraq's stock exchange. The results showed that climate-related risks are detrimental to financial stability, while size is able to mediate the relationship between climate-related risks and financial stability. The results also indicate banks' poor level of commitment to sustainability disclosure requirements. The impact of these results indicate the need for financial institutions' commitment to implement proactive climate risk management measures. Banks, particularly those working with sectors vulnerable to climate change, such as mining, agriculture or manufacturing, must optimize their resource management to mitigate the adverse effects of climate risks. At the same time, small banks could consider cooperation and synergy to improve their operations, which could enhance their financial stability against risks.

Comment citer cet article

أحمد فاضل صالح (2025) " تأثير المخاطر المتعلقة بالمناخ والاستدامة على الاستقرار المالي: آفاق اقتصادية ومالية عالمية " المجلة العالمية لإدارة الأعمال و التكنولوجيات، المجلد 20، العدد2 جوان، ص123-135