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.

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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.

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Professor Simone Varotto

Professor of Finance

Published	26 February 2025
Topics: Research news

Ten Years On: The Run on Northern Rock

21 September 2017

Some ten years ago almost to the day, a dramatic and unusual event occurred in the UK’s financial system: a run on a bank. The bank concerned was Northern Rock. ‘The Rock’ was formerly a building society and had converted to a plc in 1997 as part of the wave of building society demutualisations.

Do not panic - banks have always failed...

5 January 2009

Research by Dr Adrian R Bell, Professor Chris Brooks and Dr Tony Moore at the University of Reading's ICMA Centre has established clear parallels between the events of King Edward I's time in the late 13th century and today's credit crunch.

Ranked first in Accounting and Finance degrees in the Guardian University league tables

4 June 2014

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