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A review on climate change, credit risk and agriculture
2024
Céu, Mário Santiago | Gaspar, Raquel Medeiros
Climate change poses a significant threat to agricultural productivity, necessitating a comprehensive understanding of its implications for both agricultural firms and capital lenders. This systematic literature review aims to elucidate emerging trends in addressing climate-related risks in agriculture and credit sectors. Drawing from a rigorous analysis of 39 articles sourced from Scopus and Web of Science databases, three key thematic dimensions have emerged: (i) agricultural lending and credit risk, (ii) green principles and sustainability, and (iii) the context of developing countries. From the impact of climate change on the recoverability of loans to the imperative of transitioning towards a greener and more sustainable economy, alongside the nuanced challenges faced by agriculture in developing countries, we analysed prominent and recent literary approaches. The findings underscore the need to integrate climate change considerations into agricultural and credit policies. Policymakers and financial institutions should prioritize climate education for farmers and promote sustainable financial approaches. Anticipated climate risks will impact lenders’ capital reserves, necessitating portfolio adjustments. A deep understanding of climate change’s interplay with agriculture lending and credit risk is vital, urging proactive policy and practice. Addressing climate challenges in agriculture demands a multifaceted strategy encompassing tailored credit policies, improved access to credit, financial empowerment, and the mitigation of social inequalities. This review highlights the urgent need for proactive strategies to mitigate climate risks and ensure a resilient agricultural sector, emphasizing the crucial role of research and policy interventions in navigating the complex landscape of climate change impacts on agriculture.
اظهر المزيد [+] اقل [-]Green skills that are required by farmers and related stakeholders as part of the circular economy society
2024
Kazlauskienė, Ingrida | Vaznonienė, Gintarė | Atkočiūnienė, Vilma | Zaleckienė, Jurgita
Sustainable global development calls for a circular economy society with green skills. Farmers and related stakeholders play a crucial role in moving towards a society based on a circular economy, and in line with this position the study focuses on green skills for farmers and related stakeholders managing rural change within the framework of a circular economy society. The aim is to investigate the green skills necessary for Lithuanian farmers and related stakeholders to successfully implement circular economy principles within the agricultural sector. Empirical survey background was formatted from literature review; the data for the empirical survey was collected using a questionnaire survey of Lithuanian farmers and related stakeholders and focus group with Vytautas Magnus University Faculty of Bioeconomy Development academic community and student discussions. The data were collated, synthesised and modelled in order to identify the green skills needed for farmers and related stakeholders to implement the principles of the circular economy in rural society and to be active circular economy society members. The findings explored the significance of developing cognitive, technological, social, and action green skills for farmers and related stakeholders through a whole institution approach (WIA). The links between green skills move in a circle: when cognitive green skills change, technological, social and action green skills change also. The pinnacle of circular economy society green skills lies in action prowess, empowering farmers to not only use, but also to innovative green technologies.
اظهر المزيد [+] اقل [-]Operational risk and corporate sustainability relationship using case-based reasoning
2024
Sepúlveda, Mariana Bravo | Cuervo, Felipe Isaza | Polanco, Jorge-Andrés
This research seeks to contribute to the literature by classifying the operational risks to which companies are exposed and that have an impact on the results of sustainability through taxonomy. This study begins with a systematic literature review that covers 103 documents to build the theoretical constructs and establish the taxonomy; from this, the relationship among the constructs is established through reasoning based on 100 business cases. The results show a relationship between operational risks and corporate sustainability in aspects that generate this link, such as causes and consequences. From this, it is concluded that operational risks could affect corporate sustainability given that, based on case-based reasoning; we found relationship patterns linked by the economic, social, and environmental consequences and temporary effects on companies. The major contribution of this work lies in the proposed classification of operational risks regarding corporate sustainability and the establishment of their relationship. The findings of this study allow the management to classify the operational risk related to sustainability to carry out comprehensive risk management in companies, looking at the effects that this generates in the long term. The main limitation of this research was that the results of the connections can change depending on the analysed case. In addition, the CBR case base includes many sectors of the economy, which is why it provides heterogeneous results. It was identified that the relationship can change if a sectoral analysis is performed.
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