bio
Varun is a former PhD Student in Finance at London Business School.
Varun’s research interests lie in the field of financial intermediation and political economy. Currently, Varun is focusing on understanding the role institutional, as well as individual, investors and activists can play in improving the environmental impact of firms.
Before joining the PhD programme, Varun worked as an Associate Director with PwC risk advisory practice in London. Varun holds a Master in Finance degree from London Business School. He is also a CFA charter holder.
contacts
https://www.sharmav.com/Publications
The Real Effects of Environmental Activist Investing
Abstract
We study the real effects of environmental activist investing. Using plant-level data, we find that targeted firms reduce their toxic releases, greenhouse gas emissions, and cancer-causing pollution. Improvements in air quality within a one-mile radius of targeted plants suggest potentially important externalities to local economies. These improvements come through increased capital expenditures on new abatement initiatives. We rule out alternative explanations of decline in production, reporting biases, and forms of selection, while also providing evidence supporting the external validity of environmental activism. Overall, our study suggests that engagements are an effective tool for long-term shareholders to address climate change risks.
