Climate Change Performance Index Research Articles

The influence of board characteristics, ownership structure and public attention on climate change disclosure in banking sector companies

AbstractThis study aims to analyze the influence of board characteristics, ownership structure, and public attention on the disclosure of information related to climate change in the banking industry. This study uses panel data from financial reports and corporate sustainability in the banking sector. The data is processed using the Eviews application, using a sample of 348 companies from 2018 to 2021. The results show that the presence of women on the board, foreign board members, foreign ownership, and public attention all have a positive and significant effect influence. In contrast, board size and institutional ownership have a negative influence on the disclosure of climate change information by banking companies in different countries. Statistical tests also show that although the level of climate change information disclosure by banking companies is relatively good, there is still room for improvement to be in line with evolving standards. The study also looks at public attention through media coverage, as measured through Google Trends, which has the potential to impact climate change information disclosure, especially in sectors that are sensitive to the issue. Furthermore, the study conducted additional tests by categorizing the sample based on companies located in countries with high and medium rankings in the climate change performance index, as well as grouping them by region (Asia, Americas, and Europe). This research has important practical and theoretical contributions, advancing the understanding of the application of legitimacy and stakeholder theories to climate change and the factors that influence climate change disclosure strategies.

Electricity climate-compatibility index: Measuring global progress towards decarbonising the power sector

This paper proposes a novel index, ECI (Electricity Climate-Compatibility Index), to measure global fossil fuel electricity generation alignment with climate targets. Net anthropogenic carbon dioxide emissions (CO2) must approach zero by mid-century to stabilise the mean temperature to well below 2°C. Pursuing carbon neutrality will require immediate action if we are to avoid the economic risks associated with a delayed, more abrupt energy transition. This paper reviewed the existing literature and found insufficient indicators for country-level climate targets in electricity generation. Therefore, the paper proposes a novel electricity climate-compatibility index (ECI) to address the gap. The index computes climate compatibility or incompatibility as the difference between fossil fuel electricity generation permitted in the Integrated Assessment Model (IAM) country-level climate scenarios and that which is generated from operational, under-construction and planned power generation assets. The ECI correlates positively in specific instances with relatable metrics such as Energy Transition Index (ETI) and Climate Change Performance Index (CCPI) but provides a better understanding of the climate-incompatible generation of fossil fuel plants for a decarbonised power sector.

A Comparative Study of SOx, NOx, PM2.5 and PM10 in the UK and Poland from 1970 to 2020

Presently, there is growing discourse surrounding climate change, global warming, and the possibility of urban smog. Daily, we encounter air pollutants unwittingly, often oblivious to the substantial adverse impacts they may impart on our health. This manuscript furnishes a thorough examination of the shifts in the concentrations of distinct air pollutants, namely, sulphur oxides (SOx), nitrogen oxides (NOx), and particulate matter PM2.5 and PM10, within the contexts of the United Kingdom (a country progressively transitioning to alternative energy sources) and Poland (a country in the EU with the second lowest climate policy evaluation in the climate change performance index or CCPI) from 1970 to 2020. This comparative study between the two countries clearly showed the importance of the transition to clean energy sources. The UK’s efforts towards cleaner energy sources have led to reduced emissions of sulphur oxides (SOx) and particulate matter. In contrast, Poland’s heavy dependence on energy primarily from coal over the years has resulted in elevated pollution levels, notably in the concentration of pollutants such as particulate matter. This study also revealed that changes in emissions predominantly stem from technological advancements and economic activities. Additionally, political regulations and the gradual phase-out of specific fuels or energy-rich substances and their substitution with alternative energy sources have also imparted considerable influence.

Evaluating European Union Countries on Climate Change Management: A Fuzzy MABAC Approach to the Climate Change Performance Index

Evaluating European Union Countries on Climate Change Management: A Fuzzy MABAC Approach to the Climate Change Performance Index

기후위기에 관한 한·중 대학생의 인식 비교

This study aims to analyze the differences in how Korean and Chinese college students perceive climate crisis and to suggest strategies to elicit practical action through changes in cognitive attitudes related to addressing this issue. Results indicate that Korean students show a higher level of awareness about the severity of climate crisis, its impact, and the necessary response, compared to Chinese students. Moreover, both groups display appropriate concerns about their respective countries' climate crisis responses. Despite this, both countries were rated as 'very low' in the 2023 'Climate Change Performance Index' report, with China ranked 51st and Korea 60th. This discrepancy could be due to lack of objectively in evaluating their countries and a lack of environmental education. Therefore, to foster a change in cognitive attitudes and stimulate voluntary participation in climate crisis mitigation efforts, introduction of a climate crisis curriculum in universities is needed.

The Canonical Discriminant Model of the Environmental Security Threats

The existence of modern humanity directly depends on environmental security. Human society, biodiversity, ecosystems, and climate safety are interdependent. The anthropogenic influence that causes irreversible climate change threatens both the ecosystem’s existence and humans’ survival. To maintain a balance between human well-being and a safe environment, it is important to have a diverse knowledge of the interrelations between the technological impact on the natural environment and climate change and an understanding of action strategies to mitigate climate change and ensure sustainable development. Applying a scientific approach, data analytics, and data science tools can effectively support climate change mitigation and prevent a climate disaster. Based on the components of the climate change performance index (CCPI) 2023 for 59 countries and the EU, a canonical discriminant model was built to identify the significant factors that influence the assessment of the effectiveness of climate protection in a particular country or region and the assessment of climate risks. It can be used to assess the level of climate protection effectiveness of countries that have not defined the CCPI 2023. Based on empirical data, we have determined the real weights of the relevant CCPI components in relation to the effectiveness of actions aimed at reducing global warming. We have established that there are additional factors important for assessing climate protection, but the CCPI rating does not consider them. We conducted a comparative analysis of the CCPI index and the sustainable development goals (SDG) index. The study establishes that the differences in environmental protection among the world’s countries do not determine the assessment of the level of sustainable development of the world’s countries. The obtained results can provide information to support decision-making in developing effective strategies and urgent actions to ensure climate protection.

REDUCING CARBON EMISSION THROUGH CARBON TAX POLICY IN MALAYSIA

In accordance with the objective outlined in the 2016 Paris Agreement, there is a requirement to lower carbon dioxide (CO2) and other greenhouse gas emissions by a quarter by the year 2030. Climate policy packages that induce dramatic changes in production and consumption patterns will be required to achieve this. Despite the fact that many developed countries are proclaiming emission neutrality objectives by 2030, present practices are incompatible with these long-term ambitions. As a result, significantly stronger policy action is required. As we approach 2021, Malaysia has less than a decade to fulfill the global goal of halving carbon dioxide emissions by 2030. In the worldwide Climate Change Performance Index, Malaysia is near the bottom. To advance the sustainability objectives and address climate change concerns, Malaysia is contemplating the implementation of a carbon tax for upcoming investments. These adjustments, on the other hand, are dependent on legislators' knowledge and public demand. Hence, this study looks at how carbon tax policies were implemented in both successful and unsuccessful countries. The purpose of the study is to introduce the carbon tax policy in Malaysia. This study used secondary data to collect information on looking at the challenges and benefits of implementing a carbon tax. The finding from this study concludes that establishing a carbon tax policy has more economic and environmental benefits if the country has well-designed carbon pricing that influences consumer, business, and investor behavior while also stimulating technological innovation and earning revenue. The study recommends the government how to implement a carbon price policy framework while revising the Environmental Protection Act.

Painting art and sustainability: relationship from composite indices and a neural network

PurposeThis work aims to establish the relationship between painting art and sustainability, which allows for highlighting implications likely to improve sustainability for humanity's welfare.Design/methodology/approachTo achieve this objective, painting art is measured by a composite index aggregating the quantity and quality represented by the market value. As for sustainable development, it is represented by a composite index comprising three variables: the climate change performance index (ecological dimension), the wage index reflecting distributive justice (social dimension) and the gross domestic product (economic dimension). The composite indices were determined through adjusted data envelopment analysis. In addition, two other methods are used in this work: correlation analysis and a neural network method. These methods are applied to data from 2007 to 2021 across the world.FindingsThe correlation method highlighted a perfect positive correlation between painting art and sustainability. As for the neural network method, it revealed that the quality of painting has the greatest impact on sustainability. The neural network method also showed that the most positively impacted variable of sustainability by painting art is the social variable, with a pseudo-probability of 0.90.Originality/valueThe relationship between painting art and sustainability is underexplored, in particular in terms of statistical analysis. Therefore, this research intends to fill this gap. Moreover, analysis of the relationship between both using composite indices computed via an original method (adjusted data envelopment analysis) and a neural network method is nonexistent, which constitutes the novelty of this work.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2023-0006

Impacts of climate pact on global oil and gas sector stocks

PurposeThe purpose of this study is to examine the impacts of the Glasgow Climate Pact on global oil and gas sector stocks. Further, this study also examines if the nations' Climate Change Performance Index (CCPI) and World Energy Trilemma Index (WETI) drive the abnormal returns around the event.Design/methodology/approachThe authors apply the event study analysis to 691 global oil and gas firms across 52 countries. Further, they apply the cross-sectional examination of cumulative abnormal returns (CARs) across 502 firms.FindingsThe emerging markets experienced significant negative abnormal returns on the event day. The CCPI negatively affects longer pre-event CARs, while WETI significantly negatively associates with CARs during longer pre- and post-event windows. Volatility is negatively related to pre- and post-event abnormal returns, while past returns positively drive pre-event period CARs but negatively drive post-event window CARs. This study finds an interesting association between liquidity (CACL) and CARs, as CACL positively drives pre-event CARs, but post-event CARs are negatively associated with CACL. The CARs do not significantly correlate with leverage, size and book-to-market ratio.Practical implicationsThis study's findings on the impact of climate risks on financial markets have significant implications for global regulatory bodies. Policymakers should reduce stock volatility and enhance environmental disclosures by publicly traded companies to accurately price and assess the potential impacts of climate risks. Governments should examine the effects of environmental restrictions on investor behavior, especially in developing countries with limited access to capital. Therefore, policymakers need to consider the far-reaching impacts of environmental regulations while introducing them.Originality/valueClimate risks are expected to impact the global financial market significantly. Prior studies provide limited evidence on how such climate pacts impact the oil and gas sector. Hence, this study, while bridging this gap, provides important implications for policymakers and stakeholders, particularly the emerging markets that are more sensitive.

Climate Change Policy of India: G20 Presidency and Climate Action

One of the greatest challenges for humanity is how to address climate change, in a coordinated manner globally. Address this catastrophe requires a massive effort that needs to be undertaken now, not later. IPCC report suggests two step that would be necessary to avoid this disastrous trend of climate change, first, industrialized nations would have to reduce CO2 emissions by half by 2030, and second is to stop adding CO2 to atmosphere altogether by the early 2050s. So, the world needs to consciously uncouple from fossil fuel to more toward a low carbon future. Much of the intended transition far from fossil fuel depends on G20 countries, which accounts for 80% of global GDP, avails 75% of international trade, and collectively consume 85% of the world’s coal, oil, and natural gas annually. Recently, India has been ranked amongst top five countries in the world, and the best among the G20 countries, based on its Climate Change Performance. India jumps two spots higher, and is now ranked 8th as per Climate Change Performance Index (CCPI), 2023 published by German Watch, New Climate Institute and Climate Action Network International based in Germany. The aggressive policies of India towards climate change, and rapid deployment of renewables and robust framework for energy efficiency programs have shown considerable impact. As per CCPI report, India is on track to meet its 2030 emission targets. Currently, India has hosting its presidency toward G20 meeting 2023, and it will be an opportune time to show the world, about its climate mitigation policies such as deployment of renewable sources of energy and other energy transition programmes. The top 10 rank globally reflects that India is implementing energy transition programmes such as renewable capacity installation at much faster rate than anywhere in the world.

The Effects of Climate Change to Weather-Related Environmental Hazards: Interlinkages of Economic Factors and Climate Risk

Climate change has become an increasingly intense global phenomenon in recent years. A great number of researchers support the idea that climate change is strongly connected to some environmental hazards, and specifically, those correlated to extreme weather events. Following the Paris Agreement, and due to the increased concern regarding climate change impacts, several indices have been established. The Climate Change Performance Index (CCPI) includes 59 countries and the EU, which cumulatively emit 92% of global greenhouse gases (GHGs), while the Global Climate Risk Index (CRI) analyzes to what extend countries have been affected by impacts of weather-related loss events. Both indices provide annual scores to each country and rank them based on those scores indicating the existing environmental situation. Our main purpose is to examine whether there is an interconnection between those two indices as well as testify whether economic growth is a great contributor to country’s environmental performance and as a result to climate risk. Using a sample of the reported countries for the year 2019, the latest reported year for both indices, and following a cross-sectional econometric analysis, we provide evidence regarding the connection of CCPI and CRI by using graphs, mapping visualization and econometric estimations in order to draw lines between indices. Moreover, we examine the interlinkages, and we estimate the influence caused by socio-economic factors and emissions levels per country. We provide evidence regarding the high-ranked and low-ranked countries and how they perform not only to an environmental base, but also to an economic base. Regarding the major finding, based on our analysis, no proven causality between CRI and CCPI was observed. Economic growth appears to have a significant impact on CRI but not on the CCPI, for the year 2019, while population density has an impact on both indices. Regarding greenhouse gas emissions, the econometric estimations provide evidence of significance for CRI but not for CCPI. An in-depth understanding of the current situation as well as of the factors affecting the climate conditions will give us the needed elements in order to minimize the adverse impact, if not improve the current situation. It is well known and stated that climate action should be taken so that we bequeath a safer and more sustainable planet to the next generations.

Looking Back—Australia’s Sustainable Development and Climate Change Policy Agendas

In November 2022, a climate change performance index report released at the COP27 United Nations conference in Egypt, ranked Australia 55th on a list of 63 countries and country groupings in addressing the climate crisis. Australia is a leading development partner in the Pacific region; a region economically, environmentally, socially, and culturally impacted by climate change and global warming in the form of (e.g.,) rapid sea level rises, alarming shifts in marine ecosystems, and extreme weather events. How did Australia, a high-income country situated in the Pacific, become a nation that trails other developed countries in addressing climate change? Why has there been a lack of urgency for uptake of sustainable development policy and planning? A new Federal Government, elected in May 2022, has indicated willingness to meaningfully progress Australia’s interconnected climate change, wellbeing, and sustainability policy agendas, in which futures public health policy is inextricably linked. This change in government provides an important moment to review Australia’s sustainable-development climate change policy landscape over a 35-year period. By examining this landscape through a health lens, this paper can provide one of many critical perspectives tracing Australia’s slippage to the bottom of the global climate rankings today.

Australia's political engagement on health and climate change: the MJA-Lancet Countdown indicator and implications for the future.

Australia's political engagement on health and climate change: the MJA-Lancet Countdown indicator and implications for the future.

Climate change: Comparing "green" and "polluting" nation-states.

Some nation-states, i.e., Norway, Sweden, and Denmark, repeatedly score the highest in environmental indicators such as the Environmental Performance Index (EPI) and the Climate Change Performance Index (CCPI). Their cities win environmental awards; they have well-developed recycling systems; they perform well with biodegradable waste; and their citizens show awareness of environmental problems, protesting publicly and even sueing their governing bodies if they don't do the same. For these and other reasons, recent scholarship defined these countries as "exemplary" green nation-states. The question is, which factors pushed them toward the green transition faster than others? And overall, what stops top polluting countries such as China, the United States and Russia from walking the same path? This article attempts to answer these questions by looking at climate change through a theoretical framework based on theories of nationalism and case studies of green nation-states. It compares three of said top polluting countries, China, the United States, and Russia, with "exemplary" green nation-states, and argues that the pace of greener nation-states rests on (1) a tradition of ecologism and environmentalism rooted in the long run, (2) the lock in of "green nationalism," a form of nationalism grounded on sustainability, (3) free and effective environmental movements, (4) inclusivity and welfare, and (5) a sense of national pride in environmental achievements. The available evidence seems to suggest that top polluting nation-states lack one or more of these factors.

Comparison of EPI in the field of climate changes indexes in Iran and other countries in 2020 and the relationship between GDP and EPI

Background: This study aimed to evaluate the Environmental Performance Index (EPI) in the field of climate changes in Iran in 2020, to compare these indexes in the Middle East countries and developed countries, and to evaluate the relationship between these indexes and gross domestic product (GDP) in Iran and some of the Middle East countries, as well as 10 developed countries in the world. Methods: Data related to the EPI in the field of climate changes and GDP were extracted from the database of the Yale University (https://epi.yale.edu) and the World Bank. The relationship between them was investigated using linear regression analysis. Results: The results showed that in 2020, Iran was ranked fourteenth and sixth among the studied countries, in terms of carbon dioxide growth rate and black carbon growth rate, respectively. It has also been ranked first in terms of carbon dioxide from land cover. Also, Iran was ranked eleventh among the Middle East countries and developed countries in terms of methane (CH4 ) growth rate and was ranked sixth among the Middle East countries in terms of greenhouse gas (GHG) per capita and 13th among all studied countries. However, a significant relationship was observed between changes in GDP with GHG emissions of EPI (R2=0.82). Conclusion: Based on the Iran’s ranking in the field of climate change performance index, planning to reduce CHGs generation is necessary. Also, education of citizens in the field of methods to reduce greenhouse effects should be done by environmental policy makers.

Glasgow climate pact and the global clean energy index constituent stocks

PurposeThis study examined the impact of the Glasgow Climate Pact on the abnormal returns of global clean energy stocks. Further, this study examines which country-specific and firm-specific variables drive the cumulative abnormal returns (CARs) of clean energy stocks.Design/methodology/approachThe authors used the event study method and cross-sectional multivariate regression model. The clean energy stocks in this study are limited to 81 constituent firms of the S&P Global Clean Energy Index across 17 nations. The final sample includes 80 firms and the sample period ranges from January 26, 2021, to December 07, 2021.FindingsThe study finds that the Glasgow Climate Pact negatively affects the stock returns of clean energy firms. Moreover, the climate change performance index (CCPI) positively impacts cumulative abnormal returns (CARs), signifying that clean energy investors react positively to firms in nations with good CCPI scores. The environmental, social and governance (ESG) measure for the shorter window (−1, +1) exhibited a negative relationship with CARs. The firm-specific variables (BTM, stock liquidity, size and past returns) exhibit a negative relationship with CARs in different event windows.Research limitations/implicationsThe authors use the CCPI as a proxy for the stringency of environmental policies in any nation. The authors extend the existing literature by employing firm-specific variables and supporting previous findings. Their findings have policy implications for clean energy investors, policymakers and other market participants.Practical implicationsClimate risks impact the global financial market, so the findings have implications for global regulatory bodies. Currently, there are bankruptcy cases due to climate risks. Because financial markets must play a critical role in shifting the economy toward a green one, regulators can use the cross-sectional drivers of this study to shape policy. It is also critical for regulators to reduce stock price volatility in the event of the implementation of environmental regulations and improve environmental disclosures by publicly traded companies. Furthermore, governments are interested in researching the effects of environmental regulations to protect stakeholders' interests. These regulations significantly impact emerging markets because they lack the same solid institutional frameworks as developed markets.Originality/valueThe authors provide evidence that firms with better ESG scores and larger firm sizes have experienced fewer abnormal returns, as these firms have stable financial and non-financial fundamentals. This timely study on the ongoing regulatory shift in environmental policy will help investors, policymakers, firms and other stakeholders make relevant decisions.

Revisiting Hofstede's dimensions of national culture and environmental sustainability

This study investigates the impact of Hofstede's dimensions of national culture on environmental sustainability across 57 countries. Hofstede's national culture construct reflects and gauges the extent of the inclination of a particular national person toward either economic development or environmental preservation. Climate change and pollution have continuously devastated the environment in recent decades. The United Nations Sustainable Development Goals aim to achieve a more sustainable future and prevent further environmental destruction. This study aims to explore whether national culture significantly influences national environmental sustainability. We use national environmental performance as the proxy for national environmental sustainability and adopt the ordinary least squares regression model to explore the possible relationship with two datasets of international indices; one is proposed by Hofstede, and the other is proposed by Germanwatch. Our results show that the power distance index has a strong negative impact on the climate change performance index (CCPI), greenhouse gas (GHG) emissions, renewable energy, and energy use. Further, the masculinity index is negatively related to CCPI and GHG emissions. The individual index is also negatively related to renewable energy. Furthermore, indulgence is positively associated with climate policy. These findings support the notion that nations should consider their cultural characteristics to improve environmental sustainability. Thus, conducting a national environmental policy that aligns with national culture is suggested to achieve environmental sustainability.

Scientific clues on global food (in)security and climate change relationship as drivers of health

Abstract Issue Food insecurity is in close relationship with the determinants of health. Global crisis including climate change (CC), natural disasters, poverty can deepen the burden, and all are linked with the economic, social, commercial, structural determinants of health. Defining such connections may help in proposing practical solutions. Description of the problem COVID-19 pandemic made the food security (FS) problem more visible. Food security considers basically the affordability, availability, and the quality of food. Food insecurity (FiS), violation of the right to healthy food, influences disease patterns and causes communicable and non-communicable diseases (NCDs). Globally, 71% of deaths are attributed to NCDs. Analyzing the relationship between FiS and other determinants of health like CC may be helpful for sustainable solutions in such a world where we are talking on “our planet, our health” motto. Example given in this study is the relationship between the country values/rankings of the “Global Food Security Index (GFSI)” and the “Climate Change Performance Index (CCPI)”. GFSI defines the FS situation and CCPI defines countries’ response to CC. Results Countries’ CCPI and GFSI values do not show a linear relationship. For example, Norway, as a country at the top of the Human Development Index (HDI) ranking list has both high CCPI and GFSI values. On the other hand, although USA and Canada have low CCPI, both have good GFSI values. Sub dimensions of the indicators may also vary across countries. Crisis like COVID-19, conflicts, poverty emphasize the need on improving the indicators in a transdisciplinary approach. Lessons Investigating indicators taking the determinants of health into account is helpful. However, different characteristics of the countries make it difficult to propose a standard approach to overcome the problems. Developing “new” indicators with transdisciplinary work might be useful in this sense. Key messages

Analysis of the nexus between country risk, environmental policies, and human development

There is currently a two-way link between financial risk and climate change. International agreements on climate change involve more sustainable practices regarding the use of renewable energy and the removal of greenhouse gas (GHG) emissions, to which end there is a need for good access to finance. The aim of this research is to carry out an in-depth analysis of said relationship in order to provide decision-makers with additional information to guide the development of the most appropriate policies for each territory. First, the analysis focuses on whether economic and financial capacity is a sufficient and necessary condition for the implementation of pro-climate policies, using a sample of 55 countries spanning all continents. Second, this paper proposes a synthetic index that can be used to jointly assess climate change and country risk, before then determining whether the position reached by a country with respect to the index is similar to its relative level of human development. The research draws on the Climate Change Performance Index, Country Risk Score and Human Development Index, all corresponding to 2018. The results show that good performance in tackling climate change requires adequate economic and financial capacity, although this alone is not sufficient. The USA, Canada and Australia enjoy an economically advantageous position and yet they need to intensify their efforts in terms of policies that support the electricity supply from renewable energy and the reduction of GHG emissions. It is also concluded that good living conditions help drive climate change action and financial market access.

Which Nationalism for the Anthropocene? A Comparative Study of Exemplary Green Nation-States

This article poses, and attempts to answer, two correlated questions: (1) Is nationalism, the dominant ideology in our world of nation-states, compatible with the struggle to halt or minimize climate change and related environmental catastrophes? and (2) Which form(s) of government, whether or not informed by nationalist ideology, could better address the most serious threat to human life that currently appears on the horizon? This article puts forward the claim that while the former question has only recently begun to be explored in a few essays and articles devoted to analyzing the linkages between nationalism and climate change, the latter remains unexplored. Attempting to fill this gap, we investigate case studies of exemplary nation-states that periodically scored the highest in the Environmental Performance Index (EPI) and the Climate Change Performance Index (CCPI): Scandinavian countries (Norway, Sweden, Denmark), Switzerland, and Germany. Their cities received environmental awards (i.e., the European Green Capital Award) and registered the highest levels in terms of citizen satisfaction. The goal is to identify factors and (pre)conditions that make forms of “green nationalism” possible.