Curb carbon outputs
or face the consequences:
Falling stock prices.
We often hear about the environmental benefits of companies reducing their carbon outputs. Generally, however, little happens in business without consideration of the subsequent monetary impacts, and many companies have been slow to change their ways for little apparent financial incentive.
New research by Fang et al (2018) explores the impacts of companies not acting within the emission-intensive sector in North America. The researchers examined the risk factors of climate change on investment portfolios, both directly (e.g. physical risk to properties) and indirectly (e.g. as a result of stricter environmental regulations). They found that companies that don’t take steps to reduce their carbon output could be affected by stock price depreciation and asset devaluation within a decade. Such findings will hopefully prompt more action on curbing carbon emissions.
Original research: http://dx.doi.org/10.1080/20430795.2018.1522583