ECB Working Paper: The Low-Carbon Transition, Climate Commitments and Firm Credit Risk

The ECB published Working Paper No. 2021/2631 entitled: The Low-Carbon Transition, Climate Commitments and Firm Credit Risk. The authors are Sante Carbone, Margherita Giuzio, Sujit Kapadia, Johannes Sebastian Krämer, Ken Nyholm and Katia Vozian.

The study examined how the need to transition to a low-carbon economy affects corporate credit risk. A novel dataset was developed that complements data on corporate greenhouse gas emissions over time with information on disclosure of climate practices and forward-looking emission reduction targets.

The full paper can be found at this link.