As climate change intensifies the frequency and severity of its adverse events, there is growing concern about its impact on the economy, particularly in financial markets and corporate financial management. This study addresses this gap through a systematic literature review in Scopus according to the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) method, aiming to analyse how climate risk affects the Weighted Average Cost of Capital (WACC) and, consequently, corporate investment and financing decisions. The findings reveal that companies with negative environmental profiles face higher capital costs and loan interest rates. The cost of capital is crucial in the fight against climate change, highlighting the need for sustainable financial policies and investments. Therefore, it is essential to implement policy interventions that reduce these costs, which requires a radical transformation of existing financial frameworks, the promotion of innovative instruments, and the strengthening of financial markets through an integrated approach that links climate finance with economic and social development.

En este trabajo estudiamos el efecto de los choques climáticos sobre la productividad y el desempeño de las firmas. Durante las últimas décadas, el mundo se ha enfrentado al incremento notable de los eventos climáticos extremos, los cuales son cada vez más frecuentes y fuertes. Estos choques climáticos tienen efectos sobre la productividad de las firmas, lo cual termina afectando el desempeño de estas en el mercado. Nosotros proponemos una estrategia de estimación que nos permite cuantificar estos efectos. Utilizamos datos de la EAM del DANE, junto con información climática de CHIRPS y Copernicus. Nuestros resultados muestran evidencia de que los choques climáticos afectan negativamente la productividad de las firmas, lo cual se traduce en un menor desempeño de las firmas, en diferentes frentes como el ROA, la inversión bruta y el valor agregado.

Increased life expectancy in recent years, together with the downward trend in fertility rates, will accelerate the aging of the Latin American population (Flamini and et al., 2018) [1]. This demographic change represents a problem for pension systems as the economic capacity to finance the retirement of the population could be insufficient in the future. This creates a favorable scenario for new financial products, including reverse mortgages. This study determines, from the supply approach, the potential of reverse mortgages in the main cities of Colombia as a complement to the financing of old age according to the guidelines of Benavides et al. (Benavides Franco et al., Jan. 2021) [2]. The following variables were used: housing prices, interest rates, mortality rates, and the consumer price index. The econometric testing simulates the possible paths of these variables, estimates the probability of occurrence of the paths, and calculates the expected losses of bidding banks. The results show that reverse mortgages are a good complement to Colombia's pension system and confirm the feasibility of implementation at city level. It is recommended that the State stimulate the growth of this market and improve the corresponding regulatory framework. This study confirms the hypothesis that the reverse mortgages are a good complement to the pension system with city-level data. Specifically, it uses housing prices and mortality records from the main cities of the country (Bogotá, Cali, and Medellín) to capture their idiosyncrasies.

Background Sustainability has become an important component of corporate strategy, especially in manufacturing industries. However, the literature has not reached a consensus on the relationship between investments in environmentally friendly forms of production and firm performance. This study examines how sustainability is related to the financial and environmental performance of firms in the Colombian manufacturing industry. Methods This study uses two data sources from the National Administrative Department of Statistics of Colombia: the Annual Manufacturing Survey and the Industrial Environmental Survey. The analysis focuses on 2018–2019, when detailed information is available on investments in renewable energy self-generation and in forms of production that reduce the consumption of non-renewable energy sources. The empirical strategy is based on fixed-effects regressions and heterogeneity analysis by investment size. Results Investment in sustainable forms of production is associated with both positive and negative aspects of firm performance. Firms investing in sustainability show better outcomes in value added per worker, wages per worker, and productivity. However, they also tend to have lower return on assets and, in some cases, lower sales performance. The results also show heterogeneity by investment size: firms with low investment tend to perform poorly in most measures, while firms with high investment show improvements in several performance indicators. In addition, firms investing in sustainable forms of production tend to have higher energy consumption and higher carbon dioxide emissions per worker. Conclusions The relationship between sustainability and firm performance is heterogeneous and depends on investment size. Although higher investment levels are associated with better financial performance in several dimensions, they are also associated with higher energy use and emissions. These results highlight a tension between financial and environmental performance in the Colombian manufacturing industry.

Background Sustainability has become an important component of corporate strategy, especially in manufacturing industries. However, the literature has not reached a consensus on the relationship between investments in environmentally friendly forms of production and firm performance. This study examines how sustainability is related to the financial and environmental performance of firms in the Colombian manufacturing industry. Methods This study uses two data sources from the National Administrative Department of Statistics of Colombia: the Annual Manufacturing Survey and the Industrial Environmental Survey. The analysis focuses on 2018–2019, when detailed information is available on investments in renewable energy self-generation and in forms of production that reduce the consumption of non-renewable energy sources. The empirical strategy is based on fixed-effects regressions and heterogeneity analysis by investment size. Results Investment in sustainable forms of production is associated with both positive and negative aspects of firm performance. Firms investing in sustainability show better outcomes in value added per worker, wages per worker, and productivity. However, they also tend to have lower return on assets and, in some cases, lower sales performance. The results also show heterogeneity by investment size: firms with low investment tend to perform poorly in most measures, while firms with high investment show improvements in several performance indicators. In addition, firms investing in sustainable forms of production tend to have higher energy consumption and higher carbon dioxide emissions per worker. Conclusions The relationship between sustainability and firm performance is heterogeneous and depends on investment size. Although higher investment levels are associated with better financial performance in several dimensions, they are also associated with higher energy use and emissions. These results highlight a tension between financial and environmental performance in the Colombian manufacturing industry.