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

How I became a Young Global Leader by the World Economic Forum – The origins and success story of the PRI

31 October 2013

We are delighted to present JAMES GIFFORD, who founded the PRI initiative which now has nearly 1,200 institutions from more than 50 countries as signatories, including many of the world’s largest pension funds, insurance companies, and investment managers. They manage combined assets of more than US $34 trillion. James Gifford was also named in 2010 by the World Economic Forum as one of 200 Young Global Leaders.

Business News

ICMA Centre High Achievers

9 October 2018

Outstanding academic achievement is celebrated annually at the ICMA Centre. This year the awards were presented by the new Head of School, Dr Carol Padgett.

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In July 2017 the press was full of the news that in March 2017 the defined benefit section of USS (the retirement income builder) had a deficit of £17.5 billion. This number was computed according to the rules for company accounts, and is not used by either the regulators or USS.