Climate risk disclosures originated as part of more general sustainability disclosure frameworks but now plays a prominent role in the evolution of mandated sustainability disclosures. This chapter explores the evolution of climate risk disclosure guidance and how it increasingly reflects the...

This paper examines the valuation implications of greenhouse gas (GHG) emissions allowances. We posit that the value of a firm's bank of emission allowances has two components that are likely to be positively valued by the capital market: 1) an asset value component; and 2) a real option value...

The Clean Development Mechanism (CDM) is a flexible carbon market mechanism managed by the United Nations. The program grants tradable carbon emissions credits (Certified Emission Reductions) for carbon-reducing projects in developing countries. A project can only be admitted to program if it is...

One of the consequences of rapid industrialization and urbanization of China has been a significant increase in air pollution, frequently at levels that are hazardous to health. On 2 December, 2013, pollution reached new levels, with the air quality index crossing the threshold from “very...

We examine how monitoring reduces incentives of companies to bias reported internal rates of return in CDM projects. These estimates serve as a criterion for admission into a United Nations program that grants tradable carbon emissions permits for carbon-reducing projects in developing...

We provide the first direct analysis of the magnitude of unreliable quantitative information disclosed in corporate social responsibility (CSR) reports. CSR report reliability is of particular interest to fund managers for investment decisions as well as to policymakers for regulating and...