Timely research and its findings have highlighted the correlation between sustainable investing in green stocks and negative climate news.
- Researchers, Pastor, Stambaugh, and Taylor, through their research, proposed an index that explains how green stocks outperform brown stocks whenever there is news regarding climate change.
- The flipside is the green premium created by preference shown by investors for green stocks. This results in lower returns from these stocks in the future.
To understand how climate-related news can influence returns from green stocks, please visit:
https://www.nytimes.com/2021/11/05/business/climate-green-stock-market.html
