Proceedings of the 3rd International Conference on Big Data Economy and Digital Management, BDEDM 2024, January 12–14, 2024, Ningbo, China

Research Article

Credit Risk Assessment of Carbon Assets: Evidence from Chinese Listed Firms

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  • @INPROCEEDINGS{10.4108/eai.12-1-2024.2347205,
        author={Chenhao  Guo and Xinyong  Wang and Sian  Chen and Dan  Xia},
        title={Credit Risk Assessment of Carbon Assets: Evidence from Chinese Listed Firms},
        proceedings={Proceedings of the 3rd International Conference on Big Data Economy and Digital Management, BDEDM 2024, January 12--14, 2024, Ningbo, China},
        publisher={EAI},
        proceedings_a={BDEDM},
        year={2024},
        month={6},
        keywords={carbon assets; credit risk assessment; esg},
        doi={10.4108/eai.12-1-2024.2347205}
    }
    
  • Chenhao Guo
    Xinyong Wang
    Sian Chen
    Dan Xia
    Year: 2024
    Credit Risk Assessment of Carbon Assets: Evidence from Chinese Listed Firms
    BDEDM
    EAI
    DOI: 10.4108/eai.12-1-2024.2347205
Chenhao Guo1,*, Xinyong Wang2, Sian Chen2, Dan Xia2
  • 1: Beijing Zhongcai Green Financing Consultant Ltd
  • 2: State Grid Xiongan Financial Technology Group Co. Ltd
*Contact email: harrison.guo@uwa.edu.au

Abstract

This study presents a model to assess credit risk in Chinese listed companies, with a particular focus on incorporating carbon-related factors. By integrating macroeconomic indicators, ESG (Environmental, Social, and Governance) scores, and industry variables, the study examines the impact of carbon risk on default probabilities. Notably, it highlights a negative correlation between high ESG scores and default risks, emphasizing the importance of environmental factors in credit risk analysis within the carbon finance market. These findings provide valuable insights for credit risk management, particularly in relation to environmental sustainability and the pricing of carbon assets.