Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Financial battle against climate change – assessing effectiveness using a scorecard

Financial battle against climate change – assessing effectiveness using a scorecard This paper aims to investigate how and to what extent the Fijian sustainable banking regulations or guidelines are designed, communicated, implemented and monitored within the financial system in Fiji. A scorecard is introduced for this purpose to assess the effectiveness of Fiji’s financial battle against climate change (FBACC).Design/methodology/approachThis study uses a mixed-method methodology. Data were collected mainly from a survey and supplemented by interviews, observations and documents. The scorecard was developed by building on existing two theoretical frameworks, namely, the Sustainable Banking Assessment and Climate Change Governance Index, to make them more appropriate and practically applicable to less developed financial systems in emerging economies such as Fiji. This FBACC scorecard consists of four perspectives, eight critical factors and 24 criteria.FindingsThe results show that the overall FBACC score averages 40.75%, and all the perspectives scored below 50%, the benchmark. Only the CF “policy” scored 54.25% because of a high positive response of 82.3% for the “political leadership” criterion. The relative contributions of each perspective in constructing the overall score are distributed as 28%, 25%, 24% and 23% among planning, action, accountability and control, respectively.Research limitations/implicationsThese results were complemented by the information shared during the interviews and confirmed that the existing political initiatives need to be effectively communicated and/or implemented in the financial system by the regulatory agencies.Practical implicationsThis FBACC scorecard can be applied to other underdeveloped systems in emerging countries to assess the effectiveness of the sustainable banking regulations and/or guidelines in those countries in relation to the FBACC. It can also be applied to individual firms to assess their contribution to the FBACC.Originality/valueTo the authors’ best knowledge, this might be the first study in Fiji that considers the impact of climate-related financial risk on the Fijian financial system. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Qualitative Research in Financial Markets Emerald Publishing

Financial battle against climate change – assessing effectiveness using a scorecard

Download PDF
20 pages

Loading next page...
 
/lp/emerald-publishing/financial-battle-against-climate-change-assessing-effectiveness-using-Cq9CbGWBET
Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1755-4179
DOI
10.1108/qrfm-05-2020-0087
Publisher site
See Article on Publisher Site

Abstract

This paper aims to investigate how and to what extent the Fijian sustainable banking regulations or guidelines are designed, communicated, implemented and monitored within the financial system in Fiji. A scorecard is introduced for this purpose to assess the effectiveness of Fiji’s financial battle against climate change (FBACC).Design/methodology/approachThis study uses a mixed-method methodology. Data were collected mainly from a survey and supplemented by interviews, observations and documents. The scorecard was developed by building on existing two theoretical frameworks, namely, the Sustainable Banking Assessment and Climate Change Governance Index, to make them more appropriate and practically applicable to less developed financial systems in emerging economies such as Fiji. This FBACC scorecard consists of four perspectives, eight critical factors and 24 criteria.FindingsThe results show that the overall FBACC score averages 40.75%, and all the perspectives scored below 50%, the benchmark. Only the CF “policy” scored 54.25% because of a high positive response of 82.3% for the “political leadership” criterion. The relative contributions of each perspective in constructing the overall score are distributed as 28%, 25%, 24% and 23% among planning, action, accountability and control, respectively.Research limitations/implicationsThese results were complemented by the information shared during the interviews and confirmed that the existing political initiatives need to be effectively communicated and/or implemented in the financial system by the regulatory agencies.Practical implicationsThis FBACC scorecard can be applied to other underdeveloped systems in emerging countries to assess the effectiveness of the sustainable banking regulations and/or guidelines in those countries in relation to the FBACC. It can also be applied to individual firms to assess their contribution to the FBACC.Originality/valueTo the authors’ best knowledge, this might be the first study in Fiji that considers the impact of climate-related financial risk on the Fijian financial system.

Journal

Qualitative Research in Financial Markets – Emerald Publishing

Published: Jun 7, 2021

Keywords: Fiji; Climate change; Balanced scorecard; Bank regulations; Financial regulations; Pacific countries

References

  • Banking regulation and climate change
    Alexander, K.
  • Financial sector
    Alexander, P.; Baden, S.
  • Supervisory statement | SS3/19: enhancing banks’ and insurers’ approaches to managing the financial risks from climate change
  • Let’s talk about the weather: the impact’, political Economy – Development: Environment eJournal
    Batten, S.; Tanaka, M.
  • The green swan: central banking and financial stability in the age of climate change
    Bolton, P.; Svartzman, R.
  • Turning up the heat: corporate legal accountability for climate change
  • Beyond carbon pricing: the role of banking
    Campiglio, E.
  • Sector insights: what is driving climate change action in world’s largest companies
  • Breaking the tragedy of the horizon – climate change and financial stability
    Carney, M.
  • Monetary policy and sustainability; the case of Bangladesh. Council on economic policies, the inquiry into the design of a sustainable financial system
  • Monthly Rainfall-Runoff modeling at watershed scale: a comparative study of data-driven and theory-driven approaches
    Chang, W.; Chen, X.
  • Climate scenarios demystified: a climate scenario guide for investors. CICERO climate change. Oslo: CICERO climate change
  • Corporate governance, Ceres, Boston
    Cogan, D.G.
  • About COP23 – Bonn, 2017
  • Climate change adaptation: engaging business in Asia. CSR Asia
  • Accounting for climate risk is now the auditor’s business. In the black
    Grayston, C.
  • Green bond framework
  • Global patterns in students’ views of science and interest in science
    Griethuijsen, R.A.
  • New year’s resolution for US financial regulators: it is well past time to act on climate
    Jones, D.
  • Financial sector
    Kenton, W.
  • Global governance and democratic accountability
    Keohane, R.O.; Koenig-Archbugi, D.A.
  • Thermometer rising – climate change and Canada’s economic future
    Lane, T.
  • The geographical distribution of fossil fuels unused
    McGlade, C.; Ekins, P.
  • Factor analysis and latent structure, confirmatory. International encyclopedia of the social and behavioral sciences
    Mueller, R.; Hancock, G.R.
  • Developing indicators for environmental policy: data-driven and theory-driven approaches examined by example
    Niemeijer, D.
  • The ‘2 C capital stock’ for electricity 437 generation: Committed cumulative carbon emissions from the electricity generation sector and the 438 transition to a green economy
    Pfeiffer, A.; Millar, R.; Hepburn, C.; Beinhocker, E.
  • Climate-related financial disclosure to be mandatory for NZX and financial services sector
  • Pacific Central bankers prioritise capital flows and climate change. Joint statement from the South pacific governor’s meeting
  • Impact report: Fiji sovereign bond 2018
  • Licensed institutions
  • Financial regulators focus on climate change risk. Out-Law analysis
    Roberts, A.
  • Finance and climate change. Finance and the environment. Rome: National association for the study of credit problems (ANSPC)
    Rossi, S.
  • Balanced scorecard as an approach to the digital nervous system of a commercial bank
    Saliya, C.A.
  • The bank’s response to climate change
    Scott, M.; Huizen, J.V.; Jung, C.
  • The financial system, environment and climate: Rome: Bank of Italy
    Signorini, L.F.
  • SPX annual reports
  • Bond trades on the SPX
  • Confirmatory factor analysis
  • The use of Cronbach’s alpha when developing and reporting research instruments in science education
    Taber, K.S.
  • The world bank indicators
  • Financial development
  • Why Central banks need to step up on global warming
    Tooze, A.
  • Major boost for Fiji with additional world bank support
    Wong, A.
  • SUSTAINABLE BANKING IN ASEAN. Switzerland: world wide fund for nature
  • WWF assessment finds that ASEAN banks need to urgently lend their weight to build resilient and sustainable economies