A comprehensive study examining Swiss companies demonstrates that CO2 emission levels and intensities are not primary drivers of stock returns when compared to established financial characteristics like firm size and book-to-market ratios. The research shows that ‘brown’ firms with high emissions tend to be larger companies with lower book-to-market ratios, while ‘green’ firms are typically smaller with higher book-to-market ratios. Crucially, after controlling for exposure to standard risk factors, the return differences between high and low emission firms become statistically insignificant. These findings suggest that investors should prioritize traditional financial metrics over emission levels when making investment decisions, as carbon footprint alone does not appear to be a significant return determinant in the Swiss market.
about CO2 Emissions Not Key Driver of Swiss Stock ReturnsSustainable Finance
0 in Finance and 0 in Crypto last weekG-20 Finance Ministers Struggle Amid Trade War Tensions
The G-20 finance ministers’ meeting in South Africa faces challenges as global trade tensions, fueled by US President Donald Trump’s policies, divert attention from the host nation’s priorities, including debt relief and sustainable finance. Sanusha Naidu, a senior research fellow, highlights the difficulty in reaching consensus on key issues ahead of the G-20 Leaders’ Summit. The unpredictable nature of Trump’s trade policies adds further uncertainty to the outcomes of the discussions. The meeting’s success hinges on navigating these geopolitical and economic complexities to advance reforms in global development finance.
about G-20 Finance Ministers Struggle Amid Trade War TensionsPolygon CEO Urges DeFi Shift to Chain-Owned Liquidity
Polygon CEO Marc Boiron advocates for a fundamental shift in DeFi liquidity management, urging protocols to move away from short-term yield strategies that rely on token emissions. Instead, he promotes chain-owned liquidity, where protocols build treasuries to directly own liquidity positions, ensuring long-term stability and capital efficiency. Boiron highlights Polygon’s POL token as a model for sustainable DeFi, emphasizing that protocols should prioritize fundamentals over flashy returns to attract institutional adoption. He predicts increased institutional involvement in DeFi within 12–18 months, driven by regulatory clarity and stable liquidity models. Boiron’s vision for 2026 includes a less volatile DeFi ecosystem with stronger governance and real-world asset integration, underpinned by sustainable economic models.
about Polygon CEO Urges DeFi Shift to Chain-Owned Liquidity