The Influence of Climate Transition Risks on the Equity Markets

DOI

10.2991/978-94-6463-811-0_134How to use a DOI?

Keywords

Transition Risk; China Stock Market; Return

Abstract

This paper examines how the climate transition risk affects the performance of stock markets. The assessment of climate transition risk for firms is conducted using the Wind ESG score, while the stock market performance is evaluated by comparing the annual excess return of each company's stock against the Shanghai Composite Index. Among the listed firms in China, there appears to be a weak linkage between the risk associated with climate transition and the performance of their stock prices. In contrast, within the energy industry, a stronger connection is observed between climate transition risks faced by companies and their stock market performance. This reveals that the risks associated with corporate climate transition significantly influence stock market outcomes, especially in sectors that are notably impacted by climate changes. This suggests that companies should actively embrace climate transition, which is not only beneficial to human welfare but also promotes the company's own operations and stock price performance.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Junyu Wang
PY  - 2025
DA  - 2025/08/14
TI  - The Influence of Climate Transition Risks on the Equity Markets
BT  - Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025)
PB  - Atlantis Press
SP  - 1219
EP  - 1226
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-811-0_134
DO  - 10.2991/978-94-6463-811-0_134
ID  - Wang2025
ER  -