The Importance of Climate Risks for Institutional Investors

Philipp Krueger, Zacharias Sautner and Laura T Starks

The Review of Financial Studies, 2020, vol. 33, issue 3, 1067-1111

Abstract: According to our survey about climate risk perceptions, institutional investors believe climate risks have financial implications for their portfolio firms and that these risks, particularly regulatory risks, already have begun to materialize. Many of the investors, especially the long-term, larger, and ESG-oriented ones, consider risk management and engagement, rather than divestment, to be the better approach for addressing climate risks. Although surveyed investors believe that some equity valuations do not fully reflect climate risks, their perceived overvaluations are not large.

JEL-codes: G11 G2 G3 Q54 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (490)

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Working Paper: The Importance of Climate Risks for Institutional Investors (2018)
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