Financed emissions and the cost of bank equity
基于35国上市银行数据，研究发现银行融资排放（范围三）越高，其股权成本也越高，且这一效应在气候政策更严格的国家较弱。
Using a sample of publicly listed banks from 35 countries, we examine the association between a bank’s financed (i.e. Scope 3) emissions and its cost of equity. We document a positive effect that is both statistically and economically significant. This finding is robust to the use of alternative methodological approaches concerning the estimation of the cost of equity, as well as ones that account for endogeneity and correcting for selection bias. Further analysis indicates a moderating role of economic, governance and social readiness in terms of leveraging investments and converting them to adaptation actions. That is, the effect of Scope 3 emissions on the cost of equity is lower for banks operating in countries with a higher readiness. Finally, we find that the positive association between Scope 3 emissions and bank cost of equity is lower in magnitude for banks operating in countries with more stringent climate-related financial policies.