Overview
Climate risk is increasingly recognised as a significant risk to global economic development and financial stability. Financial institutions, particularly banks, serve as intermediaries and are particularly vulnerable to these risks. This project aims to investigate the impact of climate risk on bank performance from a global perspective, examining both physical and transition risks. More specifically, physical risks refer to those associated with the physical impacts of climate risks such as rising temperatures, rising sea levels and extreme weather events such as cyclones. For banks, physical risks can lead to loan defaults, asset devaluation, and operational disruptions due to damage to infrastructure and property. On the other hand, transition risks in this context refer to those related to the pace and extent to firms adapt by attempting to reduce greenhouse gas emissions and move to the use of renewable energy instead of fossil fuels. For banks, transition risks can manifest as stranded assets fluctuations in energy prices and shifts in investor preferences towards more sustainable practices. Managing these risks requires banks to adapt their strategies and investment portfolios to align with an environmentally sustainable economy, including reducing their carbon footprint, investing in climate-friendly projects, and supporting the broader transition.
Regulators largely agree that climate risks are expected to have a major impact on the financial system. Consequently, many supervisors have required banks to integrate climate risks into their risk management framework. However, apart from moral suasion, there are currently no direct penalties for poor performance on the sustainability dimension. Therefore, this
project aims to investigate the relationship between a bank's environmental impact and its financial performance and market valuation. More specifically, this project will examine:
1. How various measures of a bank's environmental impact relate to its financial performance and market valuation
2. The relationship between a bank's sustainability practices and its cost of capital
3. The evolution of the financial implications of banks' environmental policies and practices changed over time in the context of increasing global focus on climate issues
This project will employ panel data analysis on a global banking sample to explore these trends across regions with varying attitudes towards sustainability. The research project will specifically focus on sub-issues including reported greenhouse gas emissions, sustainable Lending & Underwriting, and Market Initiatives that the lender has signed up to.
Nottingham Business School is triple crown accredited with EQUIS, AACSB and AMBA – the highest international benchmarks for business education. It has also been ranked by the Financial Times for its Executive Education programmes in 2023 and 2024. NBS is one of only 47 global business schools recognised as a PRME Champion, and held up as an exemplar by the United Nations of Principles of Responsible Management Education (PRME).
Its purpose is to provide research and education that combines academic excellence with positive impact on people, business and society. As a world leader in experiential learning and personalisation, joining NBS as a researcher is an opportunity to achieve your potential.
Applications for October 2025 intake closes on 1st July 2025 and applications for Jan 2026 intake closes on 1st October 2025.
Staff profiles
Entry qualifications
We particularly welcome candidates with:
· A master's degree in finance, economics, or a related field
· Excellent research and analytical skills
· Proficiency in statistical software (e.g., Stata, R, or Python)
· Strong written and verbal communication skills in English
UK: Successful applicants for the PhD in Nottingham Business School normally hold a first or upper second-class honours degree from a UK university or an equivalent qualification. Candidates with a lower second-class degree may apply if they hold a Master’s degree at Merit level or higher.
International: Successful applicants for the PhD in Nottingham Business School normally hold a first or upper second-class honours degree from a UK university or an equivalent qualification.
International students will also need to meet the English language requirements - IELTS 6.5 (with minimum sub-scores of 6.0). Applicants who have taken a higher degree at a UK university are normally exempt from the English language requirements. Applicants who do not meet the English language proficiency requirement will normally be asked to complete an English Language course.
How to apply
Applications for October 2025 intake closes on 1st July 2025 and applications for Jan 2026 intake closes on 1st October 2025.
Please visit our how to apply page for a step-by-step guide and make an application.
Fees and funding
This is a self-funded PhD project for UK and International applicants.
Guidance and support
For more information about the NBS PhD Programme, including entry requirements and application process, please visit: https://www.ntu.ac.uk/course/nottingham-business-school/res/this-year/research-degrees-in-business
Nottingham Business School is triple crown accredited with EQUIS, AACSB and AMBA – the highest international benchmarks for business education. It has also been ranked by the Financial Times for its Executive Education programmes in 2023 and 2024. NBS is one of only 47 global business schools recognised as a PRME Champion, and held up as an exemplar by the United Nations of Principles of Responsible Management Education (PRME).
Its purpose is to provide research and education that combines academic excellence with positive impact on people, business and society. As a world leader in experiential learning and personalisation, joining NBS as a researcher is an opportunity to achieve your potential.