A new study shows a company's greenhouse gas emissions has a significant effect on the value of its stock.
University of Otago Associate Professor David Lont was one of three researchers who analysed four years worth of data from firms listed in the Standard and Poor's 500, and the top 200 publicly traded firms in Canada.
The study found that, all other factors being equal, the greater a company's carbon emissions, the lower its share price.
Even companies that don't reveal their carbon emission information aren't spared market scrutiny.
Professor Lont says the study shows greenhouse gas emissions are important to investors when assessing the value of a company.
He says the link between share price and emissions is evident in most industries but is strongest for energy and utility companies.