Thursday, June 25, 2026

A market-based measure of climate change risk

A market-based measure of climate change risk

Joop Huij, Dries Laurs, Philip Stork and Remco CJ Zwinkels

Carbon beta measures a stock’s sensitivity to climate change risk using a pollution minus cleanliness factor. It measures climate impact, is predicated on forward-looking risk indicators and shows that corporations with high CO2 beta perform worse within the face of climate shocks.

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