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.
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.
You might also like
First-year Finance Student Liberty Godfrey wins Ewan Page Prize
Solidus Securities Scholarship Awarded
Advance Credit And Project Finance- A Practical Case Study Approach Workshop
This site uses cookies to improve your user experience. By using this site you agree to these cookies being set. You can read more about what cookies we use here. If you do not wish to accept cookies from this site please either disable cookies or refrain from using the site.