climate change
Research

Climate Change Risk and Company Financial Disclosures
Professor Paul Griffin’s trailblazing research calls for greater corporate responsibility

As one of the first professors at the School when it opened in 1981, Paul Griffin helped build the culture and instill an ethos of sustainable business and corporate responsibility with students. 

Today, Griffin is a leading international authority in accounting, financial information and company disclosures.

Climate Change Risk and Company Financial DisclosuresAt UC Davis, he is recognized as a Distinguished Professor for his teaching and research that has had a substantial impact on the profession.

Griffin has written extensively on climate change risk and company financial disclosures.

Climate change is making business and investors sweat

In op-eds in the Financial Times and The Conversation, Griffin has called out fossil fuel companies for shortchanging investors about what they are telling the world about their activities.

He sees climate change financial risk in three main areas:

  • Environmental effects
  • Regulatory policy
  • Outside investors and creditors who aren’t getting full information

Griffin is the first to examine and quantify the impact of physical climate risk on corporate market values. His research shows that extreme heat events can sink company stock prices. He says these weather events remain surprisingly unaccounted for in financial markets.

His work in this area culminates in an upcoming article in Nature Energy, the leading energy journal. It will be the first time one of our Graduate School of Management faculty has published in Nature.

Analyze This: Investors Do Pay for Company Environmental DisclosuresInvestors are Paying for Corporate Environmental Disclosures

Griffin says there’s “no free lunch” for corporate responsibility. 

5 Ways Fossil Fuel Firms Should Open Up About Climate Risks5 Ways Fossil Fuel Firms Should Open Up About Climate Risks

Solutions to the wave of climate change lawsuits against oil and gas companies.

What is Climate Risk in Finance?

Griffin defines this special case of financial risk through three categories of uncertainty.