The finance literature on carbon risk focuses mostly on the extent to which this risk is currently priced in financial markets. This paper sheds light on a complementary question, i.e. what could be the level of potential carbon risk implied by different future climate policy scenarios. To this...

We investigate the community structure of the global ownership network of transnational corporations. We find a pronounced organization in communities that cannot be explained by randomness. Despite the global character of this network, communities reflect first of all the geographical location...

We propose a mapping from NACE codes of economic activities, into Climate Policy Relevant Sectors (CPRS) and into the variables of the process-based Integrated Assessment Models (IAM) used by the Network for Greening the Financial System (NGFS) to provide its climate scenarios. We discuss the...

We explore the dynamics of default cascades in a network of credit interlinkages in which each agent is at the same time a borrower and a lender. When some counterparties of an agent default, the loss she experiences amounts to her total exposure to those counterparties. A possible conjecture in...