ND Sustainability Research: What carbon emissions say about firm value | News | Notre Dame News | University of Notre Dame Skip To Content Skip To Navigation Skip To Search University of Notre Dame Notre Dame News Experts ND in the News Subscribe About Us Home Contact Search Menu Home › News › ND Sustainability Research: What carbon emissions say about firm value ND Sustainability Research: What carbon emissions say about firm value Published: April 13, 2011 Author: Carol Elliott Do firms reporting higher carbon emissions have lower firm value? The answer is yes, according to University of Notre Dame Accountancy Professor "Sandra Vera-Muñoz":http://business.nd.edu/sandraveramunoz/. In new research, “Voluntary Disclosures of Carbon Emissions, Carbon Emission Levels, and Firm Value,” Vera-Muñoz and her co-authors studied 2006-2008 data reported voluntarily by Standard and Poor’s 500 firms to the Carbon Disclosure Project. “We found the higher the carbon emissions levels reported, the lower the firm value,” she says. The results have significant implications, says Vera-Muñoz, as federal regulation requiring companies to pay for their carbon emissions continues to be debated. “Although regulation has yet to be adopted, our results suggest that the markets are already anticipating the effects of the costs of emissions on firm value,” she adds. Bear in mind, however, that disclosure of carbon emissions is a voluntary act. So the researchers asked, “Who chooses to disclose carbon emissions?” They found that companies that have strong overall environmental performance are more likely to voluntarily disclose carbon emissions. Some informed observers interpret this as a proactive strategy to signal actions to reduce carbon emissions, explains Vera-Muñoz. Their ongoing research also suggests that various stakeholders, such as institutional investors and NGOs, are exerting pressure for firms to make these disclosures. *_Contact_*: Sandra Vera-Muñoz, 574-631-9041, "sveramun@nd.edu":mailto:sveramun@nd.edu Posted In: Research Home Experts ND in the News Subscribe About Us Related October 05, 2022 Astrophysicists find evidence for the presence of the first stars October 04, 2022 NIH awards $4 million grant to psychologists researching suicide prevention September 29, 2022 Notre Dame, Ukrainian Catholic University launch three new research grants September 27, 2022 Notre Dame, Trinity College Dublin engineers join to advance novel treatment for cystic fibrosis September 22, 2022 Climate-prepared countries are losing ground, latest ND-GAIN index shows For the Media Contact Office of Public Affairs and Communications Notre Dame News 500 Grace Hall Notre Dame, IN 46556 USA Facebook Twitter Instagram YouTube Pinterest © 2022 University of Notre Dame Search Mobile App News Events Visit Accessibility Facebook Twitter Instagram YouTube LinkedIn