Climate Vulnerability Undervalued in Stock Markets, Research Reveals
Companies highly sensitive to temperature changes consistently underperform despite inflated stock prices, according to new financial research. A 52-year analysis reveals investors systematically underestimate climate-related financial risks, creating market inefficiencies.
Temperature Sensitivity Impacts Stock Performance
Firms with higher sensitivity to temperature fluctuations deliver significantly lower stock returns while remaining consistently overvalued, according to a comprehensive new study published in Management Science. The research analyzed over five decades of U.S. stock market data, revealing systematic mispricing of climate-related risks in financial markets.
