Carbon emissions and litigation risk

Chia-I Huang, Wei-Che Tsai, Zhi-Yuan Feng and Sharon.S. Yang

Finance Research Letters, 2025, vol. 80, issue C

Abstract: This research investigates the impact of litigation risk on corporate carbon emissions. The findings indicate that companies facing litigation tend to decrease their carbon emissions, specifically Scope 1 emissions, as a strategy to mitigate potential litigation risks. Our analyses do reveal no significant association between litigation risk and indirect emissions from purchased energy or those arising from a company's value chain. Findings further reveal that when companies encounter new litigation risks, they tend to increase the external verification of their carbon emissions. This paper offers important implications for stakeholders and investors seeking to promote sustainability when companies encounter litigation risk.

Keywords: Carbon emissions; Litigation risk; Corporate social responsibility; Securities class action lawsuits (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612325006671
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:80:y:2025:i:c:s1544612325006671

DOI: 10.1016/j.frl.2025.107407

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().