Supply Chain Climate Exposure

Article Green & Sustainable Science & Technology

Corporate carbon performance data: Quo vadis?

Timo Busch et al.

Summary: Corporate carbon performance has become a central topic in politics, finance, and academia, but issues of comparability and consistency in related data remain unresolved. This article investigates the consistency of carbon performance data between third-party providers and reveals key implications for researchers, corporate management, investors, data providers, and policymakers.

JOURNAL OF INDUSTRIAL ECOLOGY (2022)

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Article Business, Finance

Net-Zero Carbon Portfolio Alignment

Patrick Bolton et al.

Summary: In this article, a simple and robust methodology is outlined to align investment portfolios with a science-based carbon budget, ensuring a 83% probability of limiting temperature rise below 1.5 degrees C. The approach can be applied to both passive and active management, and provides an exit roadmap for carbon-intensive companies, fostering competition for decarbonization within each sector. The article also discusses four sources of risks related to the methodology.

FINANCIAL ANALYSTS JOURNAL (2022)

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Article Business, Finance

Responsible investing: The ESG-efficient frontier *

Lasse Heje Pedersen et al.

Summary: The theory proposes that ESG scores of stocks play two roles: providing information about firm fundamentals and affecting investor preferences. By computing the ESG-efficient frontier and empirical data, the costs and benefits of responsible investing are demonstrated.

JOURNAL OF FINANCIAL ECONOMICS (2021)

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Article Economics

Exporting pollution: where do multinational firms emit CO2?

Itzhak Ben-David et al.

Summary: The study found that firms headquartered in countries with strict domestic environmental policies tend to export pollution to foreign countries with more lenient policies, driven primarily by the environmental regulations in their home countries.

ECONOMIC POLICY (2021)

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Article Business, Finance

Decarbonizing Everything

Alexander Cheema-Fox et al.

Summary: Selecting different types of climate metrics across industries and weighting industries in the portfolio based on the variability of carbon outcomes among firms can help investors manage climate risk while increasing risk-adjusted returns.

FINANCIAL ANALYSTS JOURNAL (2021)

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Article Business, Finance