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

Lecturer receives promotion, award and research project grant

7 July 2011
The ICMA Centre's Dr Marcel Prokopczuk has much to celebrate this week. Dr Prokopczuk who joined the Centre in 2009, received a promotion on the 1st of July to Senior Lecturer and yesterday was awarded a University Teaching and Learning prize as well as being awarded a British Academy research project grant.

The Willink School Students Win Stock Market Competition 2017

6 July 2017
Kieran Tan and Jack Conn from The Willink School have been crowned winners of this year’s Stock Market Competition at Henley Business School’s ICMA Centre.

Top Chinese University Delegation Visits the ICMA Centre

14 November 2017
The ICMA Centre had the pleasure to welcome a delegation from Dalian Maritime University as part of ongoing discussions for potential collaboration between the two Universities in the Maritime Shipping and Finance field. This would further extent existing ties between DMU and Henley Business School in the field of Informatics.