The journey to destination zero: opportunities and challenges for financial markets

Identifier:  TFM:1440

Handle: https://hdl.handle.net/20.500.11797/TFM1440

Authors:  Neumann Calafell, Andreu Michael

Abstract:
Climate risk has become one of the risks that both companies and governments consider relevant today. Since 2018, the European Union has carried out different legislative initiatives to promote a transition towards sustainability in financial markets and the European economy. Given the importance of climate risk and the European Union in sustainability issues, the following work has analysed the effect of climate risk on the returns of European companies in the financial markets. For this purpose, 295 companies included in the Stoxx600 index have been studied between 2015 and 2019. The methodology used to carry out the study has been a panel data regression. It has been observed that during the period studied the most polluting companies and with the worst environmental ratings obtain lower returns. In addition, a proposal for a doctoral thesis project has been carried out to be developed in the period 2023-2026.