Skip to main content

Climate risk disclosures: Why more information isn’t always better for investors by Professor Simone Varotto

Professor Simone Varotto analysed the financial reports of UK-listed companies from 1996-2018 and found a surprising pattern in how markets respond to different types of climate disclosures after natural disasters strike.

News in Detail
Image from rawpixel id 27776 jpeg

The article reflects a study that revealed a counterintuitive truth about corporate climate disclosures: more disclosure doesn’t necessarily translate to better market performance during climate-related emergencies.

Companies that simply disclosed their exposure to climate risks saw smaller stock price declines following disasters compared to their non-disclosing peers. Yet, firms that went further by detailing their climate adaptation strategies experienced stock price drops just as severe as companies that made no disclosures at all.

Next Steps

News in Detail

Professor Simone Varotto

 Professor of Finance
Professor Simone Varotto
Published 26 February 2025
Topics:
Research news

You might also like

Head of ICMA Centre wins award

17 July 2019
Dr Carol Padgett has won the 2019 University Teaching Fellowship scheme. Hosted by the Centre for Quality Support and Development, the award recognises staff who demonstrate individual excellence in teaching and support of student learning.
Press releases

Academic wins prize for PhD excellence

13 February 2019
Dr Keith Arundale has won the Adam Smith Business School Prize for PhD excellence. The award recognises the excellence of the PhD thesis and its significant contribution to the chosen field of study.

ICMA Centre Senior Fellow gives comment on Reuters Insider

14 July 2010
ICMA Centre Senior Fellow Richard Comotto has appeared on Reuters commenting on a recent International Capital Market Association (ICMA) white paper looking at the financial crisis in Greece and the preceding crisis with the collapse of Lehman Brothers.