Recently, the concept of "blue finance" was introduced to the world. Blue finance envisages that ocean firms issue financial instruments to obtain funds and take necessary measures to make the ocean environment blue. To measure the blueness of a firm, we estimate the blueness index using GHG...

This paper presents evidence of a bias towards carbon-intensive companies in popular value-weighted stock market indices that are tracked by index funds and ETFs and serve as benchmark for active equity strategies. The average carbon bias in the U.S. Russell 1000 is close to 70% and the bias in...

Compliance carbon allowances and voluntary carbon credits are important tools to reduce carbon emissions and align production and consumption with the Paris Agreement. The four sizable compliance carbon allowance markets accessible to investors are those of the European Union, United Kingdom,...

We show the importance of emission disclosure for climate policies in a DSGE model for the euro area. A low-carbon energy and a fossil energy sector contribute to production and are financed by balance-sheet constrained intermediaries. The underestimation of emissions from fossil energy firms...

This study provides an empirical investigation of the price volatility — trading volume relationship for the Carbon Financial Instrument (CFI). A CFI is a financial contract that is traded on the Chicago Climate Exchange (CCX) and represents the right to emit 100 metric tons of CO2 equivalent....

One of the key issues dominating the institutional investing industry is impact investing and the need to reduce carbon emissions (measured in Carbon Dioxide Equivalents or CO2e). Many investors have signed the Net Zero Asset Owner Alliance (NZAOA), which has specific goals and targets to be met...

We compare corporate carbon emissions data of four data providers for investment universes relevant for investors in developed and emerging equity markets, as well as investment grade and high yield corporate bond markets. In contrast to Environmental, Social, and Governance sustainability...

We construct a novel carbon risk measure to assess mutual funds’ carbon risk exposure based on mutual fund holding data and further explore how such exposure affects mutual funds’ performance, risk, and flows. First, we find carbon risk negatively predicts fund future raw and risk-adjusted...

The electricity generation mix of many European countries is strongly dominated by fossil fuelled power plants. Given that CO2-emissions are responsible for a major part of the anthropogenic greenhouse effect, emission trading has been introduced in the EU in 2005. Under the European emissions...