Skip to main content

Climate risk disclosures: Why more information isn’t always better for investors by Professor Simone Varotto

Professor Simone Varotto analysed the financial reports of UK-listed companies from 1996-2018 and found a surprising pattern in how markets respond to different types of climate disclosures after natural disasters strike.

News in Detail
Image from rawpixel id 27776 jpeg

The article reflects a study that revealed a counterintuitive truth about corporate climate disclosures: more disclosure doesn’t necessarily translate to better market performance during climate-related emergencies.

Companies that simply disclosed their exposure to climate risks saw smaller stock price declines following disasters compared to their non-disclosing peers. Yet, firms that went further by detailing their climate adaptation strategies experienced stock price drops just as severe as companies that made no disclosures at all.

Next Steps

News in Detail

Professor Simone Varotto

 Professor of Finance
Professor Simone Varotto
Published 26 February 2025
Topics:
Research news

You might also like

Unilever and Kraft Heinz: A clash of (corporate) cultures

21 February 2017
Mergers and acquisitions (M&As) are a key driver of corporate growth, productivity and competitive advantage. Yet many deals have not lived up to their expectations, falling far behind the desired synergy effects.

California dreaming: Venture Capital Performance reviewed

25 August 2020
Dr Keith Arundale's new book Venture Capital Performance: a comparative study of investment practices in Europe and the USA has been reviewed in the ICAEW Corporate Financier magazine.
Research news

Studies in the History of Finance, new book series launch

22 January 2014
The 'Palgrave Studies in the History of Finance’ series, edited by Professor Adrian Bell, Head of the ICMA Centre, Dr Tony Moore, ICMA Centre Research Associate and D'Maris Coffman, Director of Centre for Financial History, Newnham College, University of Cambridge, is set to launch on 30 January, 2014 at Heffers Book Shop, Cambridge.