The indirect emissions that are financed by financial institutions represent a source
of risk. Transition risk, albeit not being directly borne by banks, may indirectly af-
fect financial intermediaries via their financing activities. This study contributes to
this literature by giving a novel insight on the structure of this risk: by means of syndi-
cated loans, a network empirical model is built to relate the lenders with their financed
emissions while also considering their respective position within the loan market. The
results show that the most central financial intermediaries are associated with higher
shares of emissions. Several robustness checks as well as different ways to account for
emissions are considered, confirming the main results. The conclusions drawn from
this paper may be relevant for practitioners and regulators alike.
