Out of sight, out of mind: Divestments and the global reallocation of pollutive assets
Abstract
We document a global reallocation of pollutive assets as a response to investor pressure: large firms facing increased investor pressure divest foreign-located pollutive assets to firms that are less in the limelight. There is no evidence of increased engagement in any other emission reduction activities. We estimate that 369 million metric tons (mt) of CO2e are reallocated via divestments in the post-Paris Agreement period. Our results indicate that investor pressure to decarbonize reshapes the global conglomerate structure of large firms.
Fields of Study & Subjects
Climate Change Policy and Economics
Corporate Social Responsibility Reporting
Energy
Environment
Economic Growth
Publication details
- Journal / source
- Journal of Financial Economics
- Publisher
- Elsevier BV
- Volume
- 182
- Pages
- 104308–104308
- Publication date
- 22 May 2026
- Language
- EN