US companies that voluntarily release the state of their greenhouse emissions saw their share prices jump significantly in the days after the disclosure, according to a report from the University of California.
“This is evidence that managers’ voluntary climate change disclosures generate positive returns for shareholders,” says research leader and professor of management Paul Griffin. By contrast, firms that did not release information on their carbon footprint saw no statistically significant stock price rise.
Many firms have refused to reveal data on their greenhouse emissions for fear of consumer backlash. However, the report’s authors say the study indicates that “investors are saying they would prefer to invest in an environmentally responsible firm” when given the opportunity.Read more at University of California, Davis