Financed Emissions

Banks play a dual role. At one end, they finance decarbonisation; at the other, they finance emissions through loans and investments. Thus, financed emissions are the greenhouse gas (GHG) emissions linked to the investment and lending activities of financial institutions like investment managers, banks and insurers. It’s the carbon footprint of a firm’s investments orContinue reading “Financed Emissions”

Market Reaction to Corporate ESG News

A recent paper by George Serafeim and Aaron Yoon explores the market reaction to different ESG news. They analyze the market reaction to ESG news for 3,109 companies. They find that prices react only to financially material ESG news, and the reaction is larger for news that is positive, receives more news coverage, and isContinue reading “Market Reaction to Corporate ESG News”