Climate Risk Disclosure and Institutional Investors

Climate Risk Disclosure and Institutional Investors

Emirhan Ilhan, Philipp Krueger, Zacharias Sautner, Laura Starks

Series number :

Serial Number: 

Date posted :

February 20 2020

Last revised :

October 13 2021
SSRN Share


  • Climate Risks • 
  • Disclosure • 
  • non-financial reporting • 
  • institutional investors

Employing disclosure theory, we develop hypotheses regarding the preferences of institutional investors with respect to firms’ climate risk disclosures.

Through a survey and empirical tests, we test these hypotheses and provide systematic evidence suggesting that institutional investors value and demand climate risk disclosures, that climate-specific disclosure costs and benefits affect these demands, and that influence and selection effects explain the equilibrium relations between institutional ownership and disclosure. We establish evidence on the influence and selection effects of the climate risk disclosures by examining the French Article 173, the investor coalition Climate Action 100+, and the UK mandatory carbon disclosure regulation.


Real name:
Emirhan Ilhan
Real name:
Research Member
McCombs School of Business, University of Texas at Austin