IIT Guwahati & IIM Bangalore Researchers Make Breakthrough In Pricing ‘Carbon Risk,’ Find Long-Term Risks For Stocks Of Polluting Firms

A new mathematical analysis conducted by researchers from Indian Institute of Technology Guwahati (IITG) and IIM Bangalore has established a relationship between the carbon footprint of companies and the potential risks of investing in these firms.

As the world looks to move towards a sustainable future and economies everywhere try to reduce their carbon footprint, the future of companies that rely on excessive emissions of Greenhouse Gases (GHG) remains uncertain.

An extensive data analysis of over 200 of the largest listed companies in the American market was carried out by the researchers from these top Institutions. To assess the carbon footprint of the companies, direct GHG emissions of the companies and purchased GHG emissions (in power consumption or heat) were considered.

The Research Team included Prof. Siddhartha Pratim Chakrabarty, Department of Mathematics and the Mehta Family School of Data Science and Artificial Intelligence, IIT Guwahati along with Prof. Sankarshan Basu from the Department of Finance and Accounting, IIM Bangalore and Mr. Suryadeepto Nag, a BS-MS student from IISER Pune.

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