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

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

Published	26 February 2025
Topics: Research news

Christmas Cheer with Alumni

10 December 2007

Meet the Tutor event a success

18 October 2012

Another annual event took place at the ICMA Centre recently to help new and returning students to settle back into university life.

Professor Adrian Bell to present at the Financial Services Forum annual conference 2013

26 November 2013

The Financial Services Forum annually invites a broad range of industry leaders, academics and researchers to share what the future holds for the financial services industry in B2B marketing. Presentations include: considered first-hand experiences from leading B2B practitioners, parallels between medieval and modern age finance, global perspectives of best practice B2B marketing and the political and regulatory challenges in this space.