Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 10, 2022 erstellt
Description:
We study whether corporate greenhouse gas (GHG) emissions have an effect on firm equity risks. Based on 8,023 firm-year observations from a sample of European firms over the period from 2010 to 2020, our results imply that GHG emissions are relevant for investors’ equity risk assessments. First, we find that firms with higher levels of scope 1 and scope 2 GHG emissions are associated with higher standard and downside equity risks. However, we cannot find any clear influence of scope 3 GHG emissions on firm equity risks. Second, our findings indicate that the mere disclosure of GHG information is in contrast linked to lower equity risks. Our results are robust to size and industry effects as well as regulatory reporting requirements