6363Copernican Journal of Finance & Accounting e-ISSN 2300-3065 p-ISSN 2300-12402024, volume 13, issue 2 Date of submission: March 19, 2024; date of acceptance: July 4, 2024. * Contact information: oluwaseunoguntuase@gmail.com, Zenith Bank PLC, Lagos, Nigeria 101243, phone: +23 48 03522823; ORCID ID: https://orcid.org/0000-0003- 2225-7766. ** Contact information: adedayoajibare@gmail.com, Department of Accounting, Lagos State University, Lagos, Nigeria 102101, phone: +44 74 40738491; ORCID ID: https://orcid.org/0000-0002-0249-1857. Oguntuase, O.J., & Ajibare, A.O. (2024). Quo Vadis Climate Transition Risk? A Literature Review and Reccomendations. Copernican Journal of Finance & Accounting, 13(2), 63–87. http://dx.doi. org/10.12775/CJFA.2024.008 oluwaseun J. oguntuase* Zenith Bank PLC aDeDayo o. aJibare** Lagos State University quo vaDis climate transition risk? a literature review anD recommenDations Keywords: climate change, transition risk, interconnectedness, systemic risk, finan- cial stability. J E L Classification: D53, G32, Q54. Abstract: This paper examines the academic research on climate transition risk. The objective of this study is to provide descriptive characteristics of research trends in the field of climate transition risk and make recommendations based on major bib- liometric data such as authors, journals, citation figures, methodology, geographical focus and author’s location. The systematic literature review methodology was used to obtain information on publications and intellectual structure related to climate transition risk from the Scopus bibliographic database until November 2023. A search strategy was developed to screen the title for eligibility, using the abstract and full text where needed. The review showed that annual evolution has increased significantly in recent years. Findings revealed a marked European and Chinese dominance with http://dx.doi.org/10.12775/CJFA.2024.008 http://dx.doi.org/10.12775/CJFA.2024.008 Oluwaseun J. Oguntuase, Adedayo O. Ajibare6464 little contribution from Global South in this research field with limited contributions from Global South in terms of focus and authors and organizations contributions. The predominant data source is data-set indices, with limited methodological diversity in climate transition risk research. Findings also showed that authors from universities, research institutes and central banks are contributing to climate transition risk litera- ture. The main themes in climate transition risk research are banking, climate policy, stock market, and asset price and performance. The impacts of climate change on in- terconnectedness, systemic risk and financial stability were widely covered in over- lapping publications.  Introduction Introduction Climate change is rapidly proceeding, and climate-related risks are being ex- acerbated. Climate change mitigation has attracted a lot of attention global- ly since the ratification of the Paris Agreement in December 2015 to limit the rise in average global temperatures to less than 2 °C over pre-industrial lev- els. Previous studies have drawn attention to the paucity of scholarly research on climate transition risk that has been published in reputable journals (see: Diaz-Rainey, Robertson & Wilson, 2017; Kouwenberg & Zheng, 2023; Nguyen, Diaz-Rainey & Kuruppuarachchi, 2023), hence the need to conduct a system- atic review of academic publications to analyze and synthetize the existing re- search work in the field of climate transition risk for academics, practitioners and the financial sector for heightened scrutiny and enhanced climate mitiga- tion efforts. The objective of this study is to provide descriptive characteristics of re- search trends in the field of climate transition risk and make recommendations based on major bibliometric data such as authors, journals, citation figures, methodology, geographical focus and author’s location. Literature reviewLiterature review Financial institutions are not only are exposed to the climate-related risks, but they are also actively exacerbating those risks by continuing to provide substan- tial financing to fossil fuel industry. Transition risks and physical risks are the two main financial risks associated with accelerating climate crisis. The physi- cal risks are linked to the actual or predicted economic effects of more frequent extreme events due to human-induces climate change. The transition risks re- late to the revaluation of carbon-intensive assets as a result of policy and tech- Quo vadis ClimatE transition risk?… 6565 nological changes necessary to achieve a low-carbon economy (Dafermos, Nikolaidi & Galanis, 2018; Dunz, Naqvi & Monasterolo, 2021). As economies shift towards carbon neutrality to execute the low-carbon transition and meet the cli- mate targets, transition risks are linked to uncertainty in the policy environment and transition pathways for climate change, including changes in public regula- tions, technologies, investors and consumers preferences (Stolbova, Monasterolo & Battiston, 2018; Monasterolo, Roventini & Foxon, 2019; Oguntuase, 2020; Jer- main, Ren, Foster, Pilcher & Berardi, 2022; Ren, Li, He & Lucey, 2023). A major transition risk is that carbon-sensitive financial assets could rap- idly lose value and become stranded as result of low-carbon technological ad- vancements as more ambitious climate policies are implemented worldwide (Sen & Von Schickfus, 2020; Shimbar, 2021; Xiao & Liu, 2023; Wang, Wang, Yu- nis & Kchouri, 2023). Systemic risk will be introduced into the financial system and financial stability will be impacted by an abrupt revaluation of financial contracts, instruments, and portfolios in response to the haphazard introduc- tion of policies for climate action (Dunz et al., 2021; Zhang, Zhang & Lu, 2022; Magacho, Espagne, Godin, Mantes & Yilmaz, 2023; Wu, Bai, Qi, Lu, Yang & Taghi- zadeh-Hesary, 2023). A mature financial system’s inherent interconnectedness exposes it to sys- temic risk. Interconnectedness of financial institutions – banks and other fi- nancial agents – increases systemic risk (Campos-Martins & Hendry, 2023; Collender, Gan, Nikitopoulos, Richards & Ryan, 2023; Hanif, Teplova, Rodina, Alomari & Mensi, 2023; Rao, Lucey & Kumar, 2023). Systemic risk is the poten- tial that a threat or hazard will cause losses or disruptions to components of an interconnected system (Mao, Wei & Ren 2023). Climate-related risks are be- coming a major systemic risk issue and one of the most important challenges facing global financial stability (Dong & Liu, 2023; Rao et al., 2023; Wu et al., 2023). In an interconnected financial system, systemic risks could result from negative impact of stranded carbon-intensive assets on the value of other fi- nancial instruments, thereby destabilizing the normal functioning of the real economy (Diallo, Bah & Ndiaye, 2023; Hanif et al., 2023; Le, Pham & Do, 2023). The negative consequences of the destabilization could have a severe impact on systemically important financial institutions and broader financial markets to financial instability (Dafermos et al., 2018; Battiston, Dafermos & Monasterolo, 2021; Roncoroni, Battiston, Escobar-Farfán & Martinez-Jaramillo, 2021; Curcio, Gianfrancesco & Vioto, 2023). Oluwaseun J. Oguntuase, Adedayo O. Ajibare6666 Research methodology and research processResearch methodology and research process The systematic literature review (SLR) approach is suitable for collecting, or- ganizing, evaluating and synthesizing all the available empirical evidence re- garding a subject of interest within a defined period of time (Solarte-Montufar, Zartha-Sossa & Osorio-Mora, 2021). This study used the Elsevier’s Scopus bib- liographic database as its search engine because it is widely regarded as a cred- ible database by academics (Khurana, Ganesan, Kumar & Sharma, 2022; Kumu- pulainen & Seppänen, 2022; Thelwall & Sud, 2022). Articles in the scientific production indexed in the Scopus bibliographic da- tabase were consulted, analyzing the articles and the emerging trends in re- search in articles published till November 14, 2023. In order to increase the search’s focus, the term “transition risk” was combined with other keywords rather than being searched alone. Using four distinct approaches to climate transition risk, four search equations were employed in the timeless search till November 14, 2023. The screening protocol from Nasreen and Baker (2022) was adapted to suit the study objective to make recommendations on climate transition research based on major bibliometric data. Equation (1): TITLE-ABS-KEY (climate “transition risk” AND “interconnectedness”) (1) Equation (2): TITLE-ABS-KEY (climate “transition risk” AND “connectedness”) (2) Equation (3): TITLE-ABS-KEY (climate “transition risk” AND “systemic risk”) (3) Equation (4): TITLE-ABS-KEY (climate “transition risk” AND “financial stability”) (4) ResultsResults Data normalizationData normalization The search equations retrieved a total of 403 records as shown in Table 1. Man- ual normalization of the records was performed. Of the 403 publications, there were 104 overlapping publications, while 67 publications were excluded for not meeting the study’s predetermined criteria. A final of total of 232 publications were selected for analysis. Quo vadis ClimatE transition risk?… 6767 Table 1. Document selection process Search equation No of publications Climate “transition risk” AND “interconnectedness” 33 Climate “transition risk” AND “connectedness” 119 Climate “transition risk” AND “systemic risk” 89 Climate “transition risk” AND “financial stability” 162 Total 403 S o u r c e : authors’ compilation. Dynamics of yearly publications in climate transition riskDynamics of yearly publications in climate transition risk The climate transition risk publication-year distribution shows an increasing trend over the five consecutive years with a remarkable increase in publica- tions between the year 2020 and 2021 and 2022 and 2023 to date. The number of publications from 2018 to November 13 2023 can be seen in Figure 1. Figure 1. Annual distribution of publications Source: authors’ compilation. Dynamics of yearly publications in climate transition risk The climate transition risk publication-year distribution shows an increasing trend over the five consecutive years with a remarkable increase in publications between the year 2020 and 2021 and 2022 and 2023 to date. The number of publications from 2018 to November 13 2023 can be seen in Figure 1. Figure 1. Annual distribution of publications Source: authors’ compilation. Top journals in climate risk transition Table 2 shows the top journals with climate transition risk publications. The journal with the highest number of articles is the Energy Economics with 19 publications. The journals CiteScore and CiteScore Percentile are also presented. Table 2. Top journals that publish climate transition risk research Journal Cite score Highest percentile (%) Articles Energy Economics 14.7 98 19 Journal of Financial Stability 5.6 91 15 Ecological Economics 11.0 95 14 International Review of Financial Analysis 9.1 94 14 Reference Module in Social Sciences N/A N/A 11 Journal of Cleaner Production 18.5 99 8 Energy Research and Social Science 11.9 98 7 Energy Policy 15.2 97 6 Climate Risk Management 6.7 88 6 Research in International Business and Finance 9.1 95 6 Finance Research Letters 10.8 96 5 International Review of Economics and Finance 5.7 85 5 One Earth 13.6 98 5 Renewable and Sustainable Energy Reviews 26.3 96 5 Technological Forecasting and Social Change 17.2 98 5 Economics Letters 2.6 57 4 International Economics 5.7 91 4 S o u r c e : authors’ compilation. Oluwaseun J. Oguntuase, Adedayo O. Ajibare6868 Top journals in climate risk transitionTop journals in climate risk transition Table 2 shows the top journals with climate transition risk publications. The journal with the highest number of articles is the Energy Economics with 19 publications. The journals CiteScore and CiteScore Percentile are also pre- sented. Table 2. Top journals that publish climate transition risk research Journal Cite score Highest percentile (%) Articles Energy Economics 14.7 98 19 Journal of Financial Stability 5.6 91 15 Ecological Economics 11.0 95 14 International Review of Financial Analysis 9.1 94 14 Reference Module in Social Sciences N/A N/A 11 Journal of Cleaner Production 18.5 99 8 Energy Research and Social Science 11.9 98 7 Energy Policy 15.2 97 6 Climate Risk Management 6.7 88 6 Research in International Business and Finance 9.1 95 6 Finance Research Letters 10.8 96 5 International Review of Economics and Finance 5.7 85 5 One Earth 13.6 98 5 Renewable and Sustainable Energy Reviews 26.3 96 5 Technological Forecasting and Social Change 17.2 98 5 Economics Letters 2.6 57 4 International Economics 5.7 91 4 Journal of Environmental Management 13.4 96 4 Resources Policy 11.3 99 4 Global Environmental Change 16.5 99 3 International Journal of Disaster Risk Reduction 7.4 94 3 Quo vadis ClimatE transition risk?… 6969 Journal Cite score Highest percentile (%) Articles Journal of Climate Finance N/A N/A 3 Journal of Environmental Economics and Management 9.0 93 3 Journal of International Money and Finance 4.0 75 3 Latin American Journal of Central Banking N/A N/A 3 S o u r c e : authors’ compilation. Most-cited publications in climate transition riskMost-cited publications in climate transition risk Referencing is a critical factor in evaluating the works of authors and journals. Table 3 displays the top 20 publications with over 70 citations. Eight (40%) of the 20 publications have also been published as working paper, discussion pa- per or policy brief. In all about 21% of the total 232 publications analyzed in this study have been published as working paper, discussion paper or policy brief of research institutes, central banks, etc as shown in Figure 2. Table 3. Most-cited publications in climate transition risk Authors Title Year Total Citation Journal Corresponding working paper Themes Yannis Dafermos, Maria Nikolaidi, Giorgos Galanis Climate change, financial stability and monetary policy 2018 272 Ecological Economics Post Keynesian Economics Society Working Paper Financial stability Juan C. Reboredo, Andrea Ugolini, Fernando Antonio Lucena Aiube Network connectedness of green bonds and asset classes 2020 167 Energy Economics Interconnec- tedness Financial stability Simon Dikau, Ulrich Volz Central bank mandates, sustainability objectives and the promotion of green finance 2021 161 Ecological Economics The School of Oriental and African Studies Working Paper Systemic risk Financial stability Table 2. Top journals… Oluwaseun J. Oguntuase, Adedayo O. Ajibare7070 Authors Title Year Total Citation Journal Corresponding working paper Themes Sarah Hafner, Aled Jones, Annela Anger- Kraavi, Jan Pohl Closing the green finance gap - a systems perspective 2020 137 Environmental Innovation and Societal Transitions Interconnec- tedness Systemic risk Financial stability Paola D’Orazio, Lilit Popoyan Fostering green investments and tackling climate- related financial risks: which role for macroprudential policies? 2019 134 Ecological Economics Laboratory of Economics and Management (LEM) Working Paper Series Interconnec- tedness Systemic risk Financial stability Irene Monasterolo, Luca de Angelis Blind to carbon risk? An analysis of stock market reaction to the Paris Agreement 2020 133 Ecological Economics Interconnec- tedness Financial stability Irene Monasterolo, Marco Raberto The EIRIN flow-of- funds behavioural model of green fiscal policies and green sovereign bonds 2018 129 Ecological Economics Systemic risk Financial stability Serena Fatica, Roberto Panzica, Michela Rancan The pricing of green bonds: are financial institutions special? 2021 116 Journal of Financial Stability The EU Joint Research Council Working Papers Financial stability Robyn Clark, James Reed, Terry Sunderland Bridging funding gaps for climate and sustainable development: pitfalls, progress and potential of private finance 2018 109 Land Use Policy Center for International Forestry Research (CIFOR) Policy Brief Financial stability Giusy Capasso, Gianfranco Gianfrate, Marco Spinelli Climate change and credit risk 2020 106 Journal of Cleaner Production EDHEC-Risk Institute Working Paper Systemic risk Financial stability Stefano Battiston, Yannis Dafermos, Irene Monasterolo Climate risk and financial stability 105 Journal of Financial Stability Interconnec- tedness Financial stability Table 3. Most-cited… Quo vadis ClimatE transition risk?… 7171 Authors Title Year Total Citation Journal Corresponding working paper Themes Johannes Stroebel, Jeffrey Wurgler What do you think about climate finance? 2021 102 Journal of Financial Economics National Bureau of Economic Research (NBER) Working Paper Systemic risk Siamak Javadi, Abdullah-Al Masum The impact of climate change on the cost of bank loans 2021 92 Journal of Corporate Finance Interconnec- tedness Veronika Stolbova, Irene Monasterolo, Steffano Battiston A financial macro- network approach to climate policy evaluation 2021 85 Ecological Economics Interconnec- tedness Systemic risk Solveig Glomsrᴓd, Taoyuan Wei Business as unusual: the implications of fossil divestment and green bonds for financial flows, economic growth and energy market 2018 84 Energy for Sustainable Development Centre for International Climate and Environmental Research, Oslo (CICERO) Working Paper Financial stability Joe Curtin, Celine McInerney, Brain O. Gallachoir, Conor Hickey, Paul Deane, Peter Deeney Quantifying stranding risk for fossil fuel assets and implications for renewable energy investment: a review of literature 2018 80 Renewable and Sustainable Energy Reviews Systemic risk financial stability Hugues Chenet, Josh Ryan-Collins, Frank van Lerven Finance, climate change and radical uncertainty: towards a precautionary approach to financial policy 2019 80 Ecological Economics Systemic risk Financial stability Alan Roncoroni, Stefano Battiston, Luis O.L. Escobar- Farfán, Serafin Martinez- Jaramillo Climate risk and financial stability in the network of banks and investment funds 2021 75 Journal of Financial Stability Interconnec- tedness Systemic risk Financial stability Table 3. Most-cited… Oluwaseun J. Oguntuase, Adedayo O. Ajibare7272 Authors Title Year Total Citation Journal Corresponding working paper Themes George Goddard, Megan A. Farrelly Just transition management - balancing just outcomes with just processes in Australian renewable energy transitions 2021 70 Applied Energy Interconnec- tedness Hua Jiang, Tomiwa Sunday Adebayo, Abraham Ayobamiji Awosusi, Asif Razzaq A symmetric effects of high- tech industry and renewable energy on consumption- based carbon emissions in MINT countries 2018 70 Renewable Energy Interconnec- tedness S o u r c e : authors’ compilation. Figure 2. Distribution of other publishing organizations Figure 2. Distribution of other publishing organizations Source: authors’ compilation. Prolific authors in climate transition risk Table 4 contains the results of the most frequent publishers on climate transition risk. It shows Irene Monasterolo with 10 publications, Brian Lucey with 5 publications, and Olaf Weber, Emanuele Campiglio and Paola D’Orazio, each with 4 publications. Irene Monasterolo was also the most cited author with 612 citations as shown in Table 5. Table 4. Prolific authors in climate transition risk No Author No of articles Citations 1 Irene Monasterolo 10 612 2 Brian Lucey 5 26 3 Olaf Weber 4 15 4 Emanuele Campiglio 4 56 5 Paola D’Orazio 4 167 6 Kun Guo 3 27 7 Oguzhan Cepni 3 8 8 Qiang Ji 3 10 9 Roberto Panzica 3 183 10 Serhan Cevik 3 37 11 Xiaohang Ren 3 156 12 Yannis Dafermos 3 417 13 Stefano Battiston 3 182 Source: authors’ compilation. Table 5. Top cited authors in climate transition risk No Author Citations No of articles 1 Irene Monasterolo 612 10 2 Yannis Dafermos 417 3 S o u r c e : authors’ compilation. Table 3. Most-cited… Quo vadis ClimatE transition risk?… 7373 Prolific authors in climate transition riskProlific authors in climate transition risk Table 4 contains the results of the most frequent publishers on climate transi- tion risk. It shows Irene Monasterolo with 10 publications, Brian Lucey with 5 publications, and Olaf Weber, Emanuele Campiglio and Paola D’Orazio, each with 4 publications. Irene Monasterolo was also the most cited author with 612 citations as shown in Table 5. Table 4. Prolific authors in climate transition risk No Author No of articles Citations 1 Irene Monasterolo 10 612 2 Brian Lucey 5 26 3 Olaf Weber 4 15 4 Emanuele Campiglio 4 56 5 Paola D’Orazio 4 167 6 Kun Guo 3 27 7 Oguzhan Cepni 3 8 8 Qiang Ji 3 10 9 Roberto Panzica 3 183 10 Serhan Cevik 3 37 11 Xiaohang Ren 3 156 12 Yannis Dafermos 3 417 13 Stefano Battiston 3 182 S o u r c e : authors’ compilation. Oluwaseun J. Oguntuase, Adedayo O. Ajibare7474 Table 5. Top cited authors in climate transition risk No Author Citations No of articles 1 Irene Monasterolo 612 10 2 Yannis Dafermos 417 3 3 Maria Nikolaidi 312 2 4 Giorgos Galanis 272 1 5 Stefano Battiston 265 3 6 Ulrich Volz 195 2 7 Roberto Panzica 183 3 8 Sarah Hafner 172 2 9 Andrea Ugolini 167 1 10 Fernando Antonio Lucena Aiube 167 1 11 Juan C. Reboredo 167 1 12 Paola D’Orazio 167 1 S o u r c e : authors’ compilation. Geographical distribution of publications on climate transition riskGeographical distribution of publications on climate transition risk Authors contributing to the climate transition risk studies are resident in sev- eral countries. Figure 3 and Table 6 portray the spatial distribution of the au- thors across continents and countries. Europe leads with 370 authors, then Asia with 183 authors. Relatively few publications in the climate transition risk literature have an author from Africa or Latin America. China tops the produc- tive countries with 107 authors. The United Kingdom comes second with 88 au- thors, while the USA follows with 63 authors. Other European nations such as Italy, France and Germany are among the best performing countries with 61, 35 and 35 pieces, respectively. Quo vadis ClimatE transition risk?… 7575 Figure 3. Author’s location by continent 3 Maria Nikolaidi 312 2 4 Giorgos Galanis 272 1 5 Stefano Battiston 265 3 6 Ulrich Volz 195 2 7 Roberto Panzica 183 3 8 Sarah Hafner 172 2 9 Andrea Ugolini 167 1 10 Fernando Antonio Lucena Aiube 167 1 11 Juan C. Reboredo 167 1 12 Paola D’Orazio 167 1 Source: authors’ compilation. Geographical distribution of publications on climate transition risk Authors contributing to the climate transition risk studies are resident in several countries. Figure 3 and Table 6 portray the spatial distribution of the authors across continents and countries. Europe leads with 370 authors, then Asia with 183 authors. Relatively few publications in the climate transition risk literature have an author from Africa or Latin America. China tops the productive countries with 107 authors. The United Kingdom comes second with 88 authors, while the USA follows with 63 authors. Other European nations such as Italy, France and Germany are among the best performing countries with 61, 35 and 35 pieces, respectively. Figure 3. Author’s location by continent Source: authors’ compilation. Table 6. Author’s location by country No of authors Countries 107 China 88 United Kingdom 63 USA 61 Italy S o u r c e : authors’ compilation. Table 6. Author’s location by country No of authors Countries 107 China 88 United Kingdom 63 USA 61 Italy 35 France 35 Germany 34 Australia 32 The Netherlands 20 Spain 19 Canada 15 Austria, Switzerland 13 India 12 South Africa 11 Norway, Taiwan Oluwaseun J. Oguntuase, Adedayo O. Ajibare7676 No of authors Countries 9 Ireland, Russia 8 Sweden 7 Japan 6 Hong Kong, Pakistan, Turkey, Vietnam 5 Brazil, Greece, New Zealand 4 Bangladesh, Denmark, Lebanon, Nigeria 3 Belgium, Finland, Philippines, Portugal 2 Cyprus, Egypt, Indonesia, Mexico, Poland, Romania, Saudi Arabia, Senegal, Singapore, Tunisia, UAE 1 Bulgaria, Cote d’Ivoire, Fiji, Jordan, Lithuania, Malaysia, Rep of Korea, Serbia, Slovenia S o u r c e : authors’ compilation. The research geographical focus of the publications was also investigated. For- ty eight publications are general reviews without specific geographical focus. Out of the remaining 184 publications, 81 have global focus. A publication is de- fined to have global focus in the context of this study if its focus consists of min- imum of two countries in different continent. Figure 4 shows the publications distribution across the continents. Figure 4. Geographical focus of the publications 35 France 35 Germany 34 Australia 32 The Netherlands 20 Spain 19 Canada 15 Austria, Switzerland 13 India 12 South Africa 11 Norway, Taiwan 9 Ireland, Russia 8 Sweden 7 Japan 6 Hong Kong, Pakistan, Turkey, Vietnam 5 Brazil, Greece, New Zealand 4 Bangladesh, Denmark, Lebanon, Nigeria 3 Belgium, Finland, Philippines, Portugal 2 Cyprus, Egypt, Indonesia, Mexico, Poland, Romania, Saudi Arabia, Senegal, Singapore, Tunisia, UAE 1 Bulgaria, Cote d’Ivoire, Fiji, Jordan, Lithuania, Malaysia, Rep of Korea, Serbia, Slovenia Source: authors’ compilation. The research geographical focus of the publications was also investigated. Forty eight publications are general reviews without specific geographical focus. Out of the remaining 184 publications, 81 have global focus. A publication is defined to have global focus in the context of this study if its focus consists of minimum of two countries in different continent. Figure 4 shows the publications distribution across the continents. Figure 4. Geographical focus of the publications Source: authors’ compilation. Contributions of organizations to climate transition risk publications The study also investigated the most productive organizations. The top financial institutions are listed in Table 7. Two United Nations’ institutions – the World Bank and the International S o u r c e : authors’ compilation. Table 6. Author’s… Quo vadis ClimatE transition risk?… 7777 Contributions of organizations to climate transition risk publicationsContributions of organizations to climate transition risk publications The study also investigated the most productive organizations. The top finan- cial institutions are listed in Table 7. Two United Nations’ institutions – the World Bank and the International Monetary Fund - are the most productive fi- nancial institutions. The top central banks are Banco de Espana and Hong Kong Monetary Authority, each with 5 publications, followed by European Central Bank with 4 publications. Table 7. The most productive financial institutions Organizations No of Publications World Bank 7 International Monetary Fund 7 De Nederlandsche Bank 6 Banco de Espana 5 Hong Kong Monetary Authority 5 European Central Bank 4 Bangko Sentral ng Pilipinas 3 Deutsche Bundesbank 3 Caisse Centrale de Reassurance 2 Bank of Canada 2 Bank of England 2 Bank of Italy 2 Bank of Russia 2 Asian Development Bank 1 S o u r c e : authors’ compilation. Similarly, the contributions of universities were investigated. With 14 publica- tions, the University of Chinese Academy of Sciences in China was ranked first. Vienna University in Austria and University of London in the United Kingdom came in second and third, respectively, with 13 and 12 publications. University Oluwaseun J. Oguntuase, Adedayo O. Ajibare7878 of Bologna in the USA and Southwestern University in China tied with nine pub- lications apiece (see Table 8). Table 8. The most productive universities No of Publications University Country 14 University of Chinese Academy of Sciences China 13 Vienna University Austria 12 University of London United Kingdom 9 Southwestern University China 9 University of Bologna Italy 8 Boston University USA 8 Stanford University USA 8 University of Adelaide Australia 7 Swiss Federal Institute of Technology Zurich Switzerland 7 National Central University Taiwan 7 Shandong University China 7 Imperial College London United Kingdom 6 Imperial College London United Kingdom 6 University of Technology Sydney Australia 6 University College Cork Ireland S o u r c e : authors’ compilation. Research institutes, consulting and advisory firms, asset and investment manag- ers, and a plethora of other institutions have contributed to the literature on cli- mate transition risk, as indicated in Table 9. With six publications each, the Joint Research Centre of the European Commission and the research institute Fon- dazione Eni Enrico Mattei, both in Italy, ranked first. Five publications were con- tributed to by three organisations: the Centre for International Climate Research in Norway, the Agence Francaise de Developpement in France, and the Potsdam Institute of Climate Impact Research in Germany. Climate Bonds Initiative and Arab Youth Climate Movement, two non-governmental organizations focused on climate change, are each involved in three and two publications respectively. Quo vadis ClimatE transition risk?… 7979 Table 9. Contribution of other organizations to climate transition risk literature No of Publications Organization Country Type of organization 6 Fondazione Eni Enrico Mattei Italy Research institute 6 Joint Research Centre, European Commission Italy Regional body 5 Potsdam Institute of Climate Impact Research Germany Research institute 5 Agence Francaise de Developpement France Public institution 5 Center for International Climate Research - CICERO Norway Research institute 4 Stockholm Environmental Institute Germany Research institute 3 Deltares The Netherlands Research institute 3 Mercator Research Institute on Global Com- mons and Climate Change Germany Research institute 3 Centre for Systems Solutions Poland Research institute 3 Joint Vienna Institute Austria Higher institution 3 auctus ESG India Consulting and advisory Firm 3 ICATALIST S.L. Spain Consulting and advisory Firm 3 Climate Bonds Initiative UK Climate NGO 2 World Health Organization Switzerland UN organization 2 Halle Institute for Economic Research Germany Research institute 2 International Institute for Applied Systems Analysis Austria Research institute 2 Wageningen Environmental Research Netherlands Research institute 2 Centre for Econometics and Applied Research Nigeria Research center 2 Ardea Investment Management Australia Investment manager 2 ECDPM -The European Centre for Development Policy Management Belgium International independent think and do tank 2 Finnish Environmental Institute Finland Government institution 2 Climate Adaptation Services Netherlands Consulting and advisory Firm 2 Climate Finance Advisors USA Consulting and advisory Firm 2 Four Twenty Seven USA Consulting and advisory Firm 2 Arab Youth Climate Movement Qatar Climate advocacy movement S o u r c e : authors’ compilation. Oluwaseun J. Oguntuase, Adedayo O. Ajibare8080 Major themesMajor themes Themes in climate transition risk research were investigated and the findings presented in Table 10. Findings showed that the major themes are banks, cli- mate policy, central banking, stock market, and asset price and performance. Table 10. Main themes in climate transition risk research Focus No of Publications Banks 35 Climate policy 34 Central banking 26 Stock markets 25 Asset prices and performance 22 Energy assets and investments 13 Corporate strategy 12 General 12 Energy policy 11 Sovereign risk 9 Microeconomic 9 Perception 7 Risk assessment 5 Firm credit risk 5 Insurance 4 Real estate & mortgages property 4 Climate –resilient infrastructure 4 Climate activism 1 Energy justice 1 Climate finance 1 S o u r c e : authors’ compilation. Quo vadis ClimatE transition risk?… 8181 Methodology diversityMethodology diversity Dataset-based indices with 43.97% in 102 publications were the dominant methodology, followed by literature review as adopted by 58 publications (see Table 11). Table 11. Methodological approaches in climate transition risk literature Methodology No of articles Share of publication Dataset-based indices 102 43.97 Review 58 25.00 Multi-method investigation 15 6.47 Scenario stimulation 13 5.60 Model simulation 11 4.74 Survey 7 3.02 Case study 6 2.59 Text-based indices 6 2.59 Event study 4 1.72 Commentary 3 1.29 Cluster analysis 2 0.86 Interview 2 0.86 Delphi study 1 0.43 Network and sensitivity analysis 1 0.43 Participatory workshops 1 0.43 Total 232 100.00 S o u r c e : authors’ compilation. Oluwaseun J. Oguntuase, Adedayo O. Ajibare8282 Impact analysisImpact analysis A three-field plot analysis was conducted to reveal of climate transition risk publications on impact of climate change on interconnectedness, systemic risk and financial stability. 100 out of the total 232 publications analyzed in this study overlap with 11% overlapping across the three areas considered as shown in Figure 5. Figure 5. Impact analysis Cluster analysis 2 0.86 Interview 2 0.86 Delphi study 1 0.43 Network and sensitivity analysis 1 0.43 Participatory workshops 1 0.43 Total 232 100.00 Source: authors’ compilation. Impact analysis A three-field plot analysis was conducted to reveal of climate transition risk publications on impact of climate change on interconnectedness, systemic risk and financial stability. 100 out of the total 232 publications analyzed in this study overlap with 11% overlapping across the three areas considered as shown in Figure 5. Figure 5. Impact analysis Source: authors’ compilation. DISCUSSION AND CONCLUSION Climate transition risk publications have increased noticeably in recent years to keep up with ‘the climate curve’. The implementation of the Paris Agreement and global central banks' initiatives are probably the main causes of this increase (Chen, Pan, Huang & Bleischwitz, 2021; Dikau & Volz, 2021). Climate transition risk is a multidisciplinary topic, as the literature is published in finance, economics, environmental science, and energy related, as well as interdisciplinary journals. It has also featured in Scopus’ high ranking journals with Energy Economics atop the journal list. Europe and Chinese dominance was established with limited contributions from Global South in terms of focus and authors and organizations contributions. The clear dominance of S o u r c e : authors’ compilation.  Discussion and conclusion Discussion and conclusion Climate transition risk publications have increased noticeably in recent years to keep up with ‘the climate curve’. The implementation of the Paris Agree- ment and global central banks’ initiatives are probably the main causes of this increase (Chen, Pan, Huang & Bleischwitz, 2021; Dikau & Volz, 2021). Climate transition risk is a multidisciplinary topic, as the literature is published in fi- nance, economics, environmental science, and energy related, as well as inter- disciplinary journals. It has also featured in Scopus’ high ranking journals with Energy Economics atop the journal list. Quo vadis ClimatE transition risk?… 8383 Europe and Chinese dominance was established with limited contributions from Global South in terms of focus and authors and organizations contributions. The clear dominance of China and European countries, mainly Western Europe, regarding contribution to the field of climate transition risk is not surprising due to their longstanding normative pro-climate leadership (Milani & Chaves, 2022; Von Lucke, 2023). Findings showed that authors from Europe, majorly Western European countries and China contributed more than other regions to literature on climate transition risk. The dominance is also reflected in the geo- graphical focus of the publications with few studies centered on Africa, Oceania and South America. The leading universities are from Europe, Asia and the USA. In addition to two United Nations financial institutions, Asian and European central banks are the leading contributors. In relation to contribution from outside universi- ties and central banks, European research institutes have more publications in a list which also include the World Health Organization, consulting and advi- sory firms and climate NGOs. The large gap in climate transition risk research between Western Europe and the United States is likely caused by differences in public and political support for climate change mitigation policies (Kouwen- berg & Zheng, 2023). Climate transition risk publications largely focused on banks, climate policy, central banking, stock market and asset performance. Findings revealed limited methodological diversity in climate transition risk research. However, impacts of climate change on interconnectedness, systemic risk and financial stability were widely covered with overlapping publications. Meaningful action to understand and address the impacts of climate change on the financial system requires the engagement of the brightest minds in aca- demics as wells as the attention of the leading journals that define the agendas in their respective disciplines. Understanding the situation is the first step towards improving the state of the literature on climate transition risk. This study repre- sents a catalyst to get academics interested in financial opportunities and risks associated with climate change in general and climate transition risk in particular. Better collaboration between academics and practitioners in financial insti- tutions, as well as across geographic regions, can be beneficial for climate tran- sition risk literature. This will contribute to the advancement of the knowledge, methodology and capabilities needed to tackle climate change in the upcoming years and decades. Moreover, since the climate is a global commons, the Global South cannot be ignored. Oluwaseun J. Oguntuase, Adedayo O. Ajibare8484  References References Battiston, S., Dafermos, Y., & Monasterolo, I. (2021). Climate risks and financial stability. Journal of Financial Stability, 54, 100867. https://dx.doi.org/10.1016/j. jfs.2021.100867. Campos-Martins, S., & Hendry, D.F. (2023). Common volatility shocks driven by the glob- al carbon transition. Journal of Econometrics, 105472. https://dx.doi.org/10.1016/j. jeconom.2023.05.008. Capasso, G., Gianfrate, G., & Spinelli, M. (2020). Climate change and credit risk. 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