CO2 disclosure cuts the cost of debt
A recent study by Stefanie Kleimeier (ECCE) and Michael Viehs (University of Oxford & ECCE) entitled “Carbon Disclosure, Emission Levels, and the Cost of Debt“ has been has been featured in the 7th RI Quarterly published by the UNPRI.
Highlights of the study's findings:
Voluntary disclosure: Companies which voluntarily participate in the CDP disclosure framework enjoy more favorable lending conditions - in the form of lower spreads on their bank loans.
Emission levels: Firms with relatively higher CO2 emission levels pay higher spreads but only when borrowing from environmentally norms-constrained lenders. Click here for the paper that featured in RI quarterly.