Future of Emissions
8 Oct 2024
13:00 -14:15
Times are shown in local time.
Open to: All
Castle Teaching Room (Cambridge Judge Business School)
Trumpington St
Cambridge
CB2 1AG
United Kingdom
Join our Finance seminar
Speaker: Dr Andreas Brøgger, Rotterdam School of Management, Erasmus University
About the seminar topic
We argue for the introduction of firm-level emission futures contracts as a novel way of assessing the real impact of ESG initiatives. Our measure is based on the forward-looking market-based valuation of firm-level CO2 emissions. We establish both theoretically and empirically that backward-looking subjective ratings are limited to the extent that they fail to capture future reductions in emissions.
We show evidence that although lower emissions have predicted higher E ratings, higher E ratings have predicted higher, not lower, emissions. As such, by following these subjective ratings, investors may have inadvertently allocated their money to firms that pollute more, not less. We discuss several applications of our new measure, including executive pay and investment management.
Speaker bio
Dr Andreas Brøgger is an Assistant Professor of Finance at Rotterdam School of Management, Erasmus University. He also holds an associate research position at Copenhagen Business School, Erasmus Research Institute of Management, and Netspar. His research focuses on the intersection of asset pricing and sustainable finance, particularly examining the impact of ESG scores on asset prices, fund performance, and carbon emission reductions. His work has been awarded the Best Finance Paper Award and presented worldwide at conferences such as the American Finance Association and European Finance Association annual meetings.
Andreas’s recent research introduces a novel ESG measure based on market prices, designed to enhance the evaluation of sustainability performance in investments and as a result its overall effectiveness. His research aims to provide academic and practical insights into how financial markets can more effectively integrate ESG considerations.
Register
No registration required. If you have any questions about this seminar, please email Nigel Low.