ProfMartina Linnenluecke

Our work highlights significant gaps in corporate climate risk disclosures and demonstrates a need for enhanced reporting standards. The research also underscores the challenges companies face in accessing reliable data on climate risk impacts, which can hinder their ability to respond effectively to emerging environmental and regulatory pressures. By addressing these issues, our work helps partners identify areas for improvement in climate-related financial disclosures, strengthen strategic decision-making through the integration of climate risk data, and align corporate reporting with evolving global standards to ensure compliance with potential future regulations.

Our research helps explain how markets react to climate policies, especially the risks and costs involved when countries shift to cleaner economies. This is known as transition risk, and it is important for policymakers who want to understand how their climate decisions might affect financial markets. It is also valuable for investors who need to assess how climate action in one country could influence returns and risks across global markets. Our research shows that when countries make clear net zero announcements, markets around the world tend to move together. This tells us that investors are paying attention to these signals. When climate policies are made more certain, investors respond positively. It shows that markets understand the challenges of climate change and are already factoring climate risks into how they value investments. Clear commitments to net zero help reduce uncertainty and support investors in managing those risks.