Skip to content

The project addresses the question of how effective investor pressure on public companies is to reduce climate emissions. One way to reduce emissions
is selling climate-damaging assets to companies that are less in the public eye, like private companies. This could lead to a kind of disclosure arbitrage,
but not to a real reduction in emissions. The study will first use various databases to examine how investor pressure affects emissions and whether divestment of climate-damaging assets is a common response. An EU database on individual plants is then used to analyze where so-called “brown” plants are migrating to. Finally, textual analyses will be used, for example, to determine how companies’ reputational risks change over time. From this, we can infer the extent to which investors are aware of brown plant relocation.

The project is conducted by Prof. Dr. Daniel Streitz Halle Institute for Economic Research.

The project is scheduled for a period of 18 months.