significant negative relation. On average, the risk-adjusted annual future returns of stocks with low exposure to CPU are 6 ….5%–7.7% greater than the returns of stocks with high exposure. Low CPU-beta firms are value, green stocks with low crash risk, and … they are more closely aligned with Democrats. Conversely, high CPU-beta firms are growth, brown stocks with high crash risk …

that lead to these assets becoming stranded. Our result suggest that climate change implies a positive and increasing risk … risk. Transition risks lower substantially the participation of carbon intensive assets in the market portfolio, which …

In the presence of rising concern about climate change that potentially affects risk and return of investors’ portfolio … companies, active investors might have dispersed climate risk exposures. We compute mutual fund covariance with market ….24% per month on a risk-adjusted basis. High climate beta funds tilt their holdings toward stocks with high potential to hedge …

Investors have a growing awareness that climate transition risks (such as carbon pricing policy) are among the new risk …