Costs and Benefits of Decarbonization Promises

This research article investigates the impact of corporate decarbonization commitments on borrowing costs in the bond market. It analyzes whether firms aligned with climate targets face higher or lower corporate-bond spreads compared to those that are off-track. The study utilizes a comprehensive dataset of 2,876 USD-denominated corporate bonds, controlling for conventional risk factors and sector effects, to provide insights for investors and credit analysts on the financial implications of cli