Large emitters reduced their carbon emissions by around 12% after the 2015 Paris Agreement (“the Agreement”) relative to public firms that are less in the limelight. We show that this effect is driven by divestments. Large emitters are 9 p.p. more likely to divest pollutive assets in the...

ESG ratings are experiencing unprecedented scrutiny from investors and other stakeholders. In particular, the reliability and comparability of ESG ratings provided by different raters is challenged by several seminal papers. In the present study, based on a machine learning (ML) approach, we...