Carbon emissions impact on stock performance for IT companies : An empirical study of the link between carbon emissions for information technology companies and stock performance
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- Master Thesis 
This paper investigates whether carbon emissions have an effect on financial performance on companies in the information technology sector, by separating emissions in scope 1, 2 and 3. We want to examine if carbon footprint heavy portfolios have an inferior financial performance to the low carbon footprint portfolios. Using a dataset of stock prices and carbon intensities of 358 information technology companies between 2012 and 2021. We find that carbon footprint heavy stocks generate a lower risk-adjusted return, than the stocks with lower carbon footprint, that can be explained by a lower volatility in the Low carbon footprint stocks. However, we also find that historically it is the carbon footprint heavy stocks that generate the highest stock return. The relationship we identify can provide an incentive for investors to invest in low carbon technology stocks.