Corporate Green Pledges

Michael Bauer, Daniel Huber, Eric Offner, Marlene Renkel, Ole Wilms and Michael D. Bauer
Authors registered in the RePEc Author Service: Michael Dominic Bauer

No 11507, CESifo Working Paper Series from CESifo

Abstract: We identify corporate commitments for reductions of greenhouse gas emissions—green pledges—from news articles using a large language model. About 8% of U.S. firms have made green pledges, and these companies tend to be larger and browner than those without pledges. Announcements of green pledges significantly and persistently raise stock prices, consistent with reductions in the carbon premium. Firms that make green pledges subsequently reduce their CO2 emissions. Our evidence suggests that green pledges are credible, have material new information for investors, and can reduce perceived transition risk.

Keywords: climate finance; decarbonization commitments; text classification; event study; transition risk; carbon premium (search for similar items in EconPapers)
JEL-codes: G14 G32 Q54 Q56 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
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Related works:
Working Paper: Corporate Green Pledges (2024)
Working Paper: Corporate green pledges (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_11507

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