Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/308043 
Year of Publication: 
2024
Series/Report no.: 
SAFE Working Paper No. 437
Publisher: 
Leibniz Institute for Financial Research SAFE, Frankfurt a. M.
Abstract: 
We report results from a pre-registered field experiment about the impact of index provider engagement on corporate climate policy. A randomly chosen group of 300 out of 1227 international companies received a letter from an index provider, encouraging the company to commit to setting a science-based climate target to remain included in its climate transition benchmark indices. After one year, we observed a significant effect: 21.0% of treated companies have committed, vs. 15.7% in the control group. This suggests that engagement by financial institutions can affect corporate policies when a feasible request is combined with a credible threat of exit.
Subjects: 
Shareholder Engagement
Field Experiment
Climate
ESG
Activism
JEL: 
D22
D62
G23
G34
M14
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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