What is the risk associated with carbon targets?

This research project will help investors determine the risk associated with corporations achieving their future carbon targets.
As corporations and investment firms both commit to targets for reducing their carbon emissions, there is growing desire to understand the risk associated with these future target statements. Whether or not a firm achieves its emissions targets can not only place its reputation at risk, but also that of those along it’s supply chain, including their investors. Current and future policies aimed at pricing climate externalities, mean that corporate climate performance can have a material impact on financial performance. Yet, the lack of reliable metrics to capture these risks pose severe challenges. This project aims to develop a novel methodology to predict the likelihood of achieving future corporate carbon targets. It will also publish an open database of the resulting risk measures for those companies that are  analyzed.