Challenges for a climate risk disclosure mandate

Article Business, Finance

Why is Corporate Virtue in the Eye of The Beholder? The Case of ESG Ratings

Dane M. Christensen et al.

Summary: Despite the increasing use of ESG ratings, there is substantial disagreement among rating agencies regarding the ratings given to individual firms. This study finds that greater ESG disclosure actually leads to greater ESG rating disagreement, and raters disagree more about ESG outcome metrics than input metrics. It is also observed that ESG disagreement is associated with higher return volatility, larger absolute price movements, and a lower likelihood of issuing external financing.

ACCOUNTING REVIEW (2022)

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Article Business, Finance

A new take on voice: the influence of BlackRock's 'Dear CEO' letters

Andrea Pawliczek et al.

Summary: The study shows that broad-based public engagement by institutional investors does influence the behavior of portfolio firms. Firms tend to reflect the topics discussed in letters like BlackRock's annual Dear CEO letter in their disclosures and voting patterns. Additionally, firms' lobbying efforts post-letter period become more aligned with the highlighted issues in the letters.

REVIEW OF ACCOUNTING STUDIES (2021)

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Article Green & Sustainable Science & Technology

Rhetoric and frame analysis of ExxonMobil's climate change communications

Geoffrey Supran et al.

Summary: The paper explores how ExxonMobil utilizes rhetoric and framing to influence public discourse on climate change. They have emphasized certain terms and topics while neglecting others, constructing a Fossil Fuel Savior (FFS) frame that downplays climate change and shifts responsibility onto individual consumers. This mirrors the tobacco industry's strategy of shifting blame away from corporations onto consumers.

ONE EARTH (2021)

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Editorial Material Energy & Fuels