Climate Policy Risk and Asset Prices in Switzerland

February 2023 | Do Swiss investors care about the risks of the ecological transition?

In a new study, the CREA Institute of the HEC Faculty (UNIL) has measured and quantified the evolution between 2000 and 2022 of financial risks in Switzerland related to climate policies. The results show that these risks are increasingly important for the dynamics of Swiss equities, especially in the last 2-3 years. Moreover, events that increase the risk of climate transition tend to have a more negative impact on the share prices of companies with high CO2 emissions. Investing in companies with low CO2 emissions could therefore prove to be an effective risk minimization strategy.