Posted 4/2/2024, 8:33:43 PM
Proactive Companies Avoid Climate Risk Valuation Hits by Boosting Sustainability Investments, But SEC Rules Loom
- Companies with high exposure to climate transition risks tend to be valued lower by investors
- However, companies taking proactive steps to reduce climate impacts avoid valuation discounts
- "Proactive" firms increase sustainable investments as risks grow; "passive" ones cut R&D
- There's a stark divide in strategies and outcomes between proactive and nonproactive companies
- By 2024, SEC rules require public companies to report climate risk exposures