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Companies that mitigate climate change reduce their cost of capital

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companies that mitigate climate change reduce their cost of capital

A recent study explored the relationship between corporate climate change mitigation actions and the cost of capital for 2,100 Japanese listed companies from 2017 to 2021. The findings reveal that companies that maintain lower carbon intensity and disclose more climate-related information can reduce their capital costs. Conversely, mere commitments to climate change without actionable measures do not significantly impact costs.

Source: ScienceDaily.com