Research and publications

Institutional Investors and Corporate Carbon Footprint: Global Evidence

Climate-aware institutional investors are assumed to affect the transition towards a low carbon economy by exercising their prerogatives as owners of ...

Author(s) :

Gianfranco Gianfrate, Tim Kievid, Angelo Nunnari

Summary :

Climate-aware institutional investors are assumed to affect the transition towards a low carbon economy by exercising their prerogatives as owners of global companies. Investors concerned with climate change can influence investee companies’ carbon footprint by voting at shareholder meetings on climate-related issues and by actively engaging with executives and board members.

Authors study to what extent institutional investors’ ownership affected corporate carbon emissions in 68 countries for the period of 2007 to 2018.

Results show that institutional investment on average does not appear to lead to a carbon footprint reduction. However, institutional investors are associated with a limited reduction of carbon footprint for the highest polluters in the sample. These results suggest that climate-driven responsible investors can complement but not substitute national and international climate policies.

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Type : EDHEC Publication
Date : 28/10/2021