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The Big Three and Corporate Carbon Emissions Around the World

Author

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  • Ormazabal, Gaizka
  • Azar, José
  • Duro, Miguel
  • Kadach, Igor

Abstract

This paper examines the role of the “Big Three†(i.e., BlackRock, Vanguard, and State Street Global Advisors) on the reduction of corporate carbon emissions around the world. Using novel data on engagements of the Big Three with individual firms, we find evidence that the Big Three focus their engagement effort on large firms with high CO2 emissions in which these investors hold a significant stake. Consistent with this engagement influence being effective, we observe a strong and robust negative association between Big Three ownership and subsequent carbon emissions among MSCI index constituents, a pattern that becomes stronger in the later years of the sample period as the three institutions publicly commit to tackle ESG issues.

Suggested Citation

  • Ormazabal, Gaizka & Azar, José & Duro, Miguel & Kadach, Igor, 2020. "The Big Three and Corporate Carbon Emissions Around the World," CEPR Discussion Papers 15522, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15522
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    References listed on IDEAS

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    Cited by:

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    2. Baines, Joseph & Hager, Sandy Brian, 2022. "From Passive Owners to Planet Savers? Asset Managers, Carbon Majors and the Limits of Sustainable Finance," EconStor Preprints 249674, ZBW - Leibniz Information Centre for Economics.
    3. Dorsaf Azouz Ghachem & Nadia Basty & Qasim Zureigat, 2022. "Ownership Structure and Carbon Emissions of SMEs: Evidence from OECD Countries," Sustainability, MDPI, vol. 14(21), pages 1-16, November.

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    More about this item

    Keywords

    Climate change; Carbon emissions; ESG; Big three; Shareholder activism; Institutional ownership;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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