Climate change can pose significant risk to the financial system and economic activity (Giglio et al., 2021). Risk related to climate change i.e. climate risk, is classified into two broad categories: physical risk and transition risk. Physical risk stems from the direct impacts of changes in climate on the economy whilst transition risk arises from the transition towards a low-carbon economy. Physical and transition climate risk materialise through multiple transmission channels such as by influencing the consumer and investor sentiment, value of financial assets and borrowing costs on carbon-intensive investment. To mitigate and adapt to climate change, climate finance has been growing rapidly in recent years by diverting public and private financing from brown projects towards environmentally sustainable projects which helps to secure the financial resources needed to address the adverse climate effects. Climate finance also plays a key role in hedging against the risk posed by changes in climate through sharing and transferring of risk.
The United Nation Principles for Responsible Investment highlights the importance of incorporating environmental, social and governance (ESG) factors into investment decision-making, thereby promoting sustainable investment. The evolving regulatory agenda has led to a shift in the investment industry and preferences of investors, which is evidenced by the embedment of ESG in the portfolio allocation and business model. Accordingly, the growing ESG awareness has profound effects on firms’ financing conditions by aligning investment with sustainability (Avramov et al., 2022). In particular, ESG investing is an effective tool for climate risk management and portfolio rebalancing as climate change forms a focal dimension of ESG considerations.
Despite the ongoing work with respect to climate finance and ESG investing, considerable challenges remain to understand the integration of climate risk and ESG and how to effectively manage climate risk. Further research is therefore needed to contribute to achieving tangible progress in mitigating climate change and creating long-term value for investors, firms and governments. The aim of this PhD project is to explore the impact and propagation of climate risk in financial markets as well as its interaction with ESG issues. Seeking to understand: 1) whether and to what extent climate risk is incorporated into ESG investing; 2) the time-varying nature and heterogeneity in exposure to climate change across firms and financial assets by virtue of the aggregate attribute of climate risk; 3) systemic risk to the financial system arising from climate change, this project invites theoretical and empirical contributions to offer insights into the relevant phenomena.
It is expected that the applicant would have a good working knowledge of statistical software such as R, Stata, Matlab or Python.
Academic Enquiries
This project is supervised by Dr Dongna Zhang. For informal queries, please contact [Email Address Removed]. For all other enquiries relating to eligibility or application process please use the email form below to contact Admissions.
Funding Information
Home and International students (inc. EU) are welcome to apply. The studentship is available to Home and International (including EU) students and includes a full stipend at UKRI rates (for 2022/23 full-time study this is £17,668 per year) and full tuition fees. Studentships are also available for applicants who wish to study on a part-time basis over 5 years (0.6 FTE, stipend £10,600 per year and full tuition fees) in combination with work or personal responsibilities).
Please also see further advice below of additional costs that may apply to international applicants.
Eligibility Requirements:
- Academic excellence of the proposed student i.e. 2:1 (or equivalent GPA from non-UK universities [preference for 1st class honours]); or a Masters (preference for Merit or above); or APEL evidence of substantial practitioner achievement.
- Appropriate IELTS score, if required.
- Applicants cannot apply for this funding if they are already a PhD holder or if currently engaged in Doctoral study at Northumbria or elsewhere.
Please note: to be classed as a Home student, candidates must meet the following criteria:
- Be a UK National (meeting residency requirements), or
- have settled status, or
- have pre-settled status (meeting residency requirements), or
- have indefinite leave to remain or enter.
If a candidate does not meet the criteria above, they would be classed as an International student. Applicants will need to be in the UK and fully enrolled before stipend payments can commence, and be aware of the following additional costs that may be incurred, as these are not covered by the studentship.
- Immigration Health Surcharge https://www.gov.uk/healthcare-immigration-application
- If you need to apply for a Student Visa to enter the UK, please refer to the information on https://www.gov.uk/student-visa. It is important that you read this information very carefully as it is your responsibility to ensure that you hold the correct funds required for your visa application otherwise your visa may be refused.
- Check what COVID-19 tests you need to take and the quarantine rules for travel to England https://www.gov.uk/guidance/travel-to-england-from-another-country-during-coronavirus-covid-19
- Costs associated with English Language requirements which may be required for students not having completed a first degree in English, will not be borne by the university. Please see individual adverts for further details of the English Language requirements for the university you are applying to.
How to Apply
For further details of how to apply, entry requirements and the application form, see
https://www.northumbria.ac.uk/research/postgraduate-research-degrees/how-to-apply/
For applications to be considered for interview, please include a research proposal of approximately 1,000 words and the advert reference (e.g. RDF23/…).
Deadline for applications: 27 January 2023
Start date of course: 1 October 2023 tbc
Northumbria University is committed to creating an inclusive culture where we take pride in, and value, the diversity of our doctoral students. We encourage and welcome applications from all members of the community. The University holds a bronze Athena Swan award in recognition of our commitment to advancing gender equality, we are a Disability Confident Employer, a member of the Race Equality Charter and are participating in the Stonewall Diversity Champion Programme. We also hold the HR Excellence in Research award for implementing the concordat supporting the career Development of Researchers.