Top executives are saying the word “carbon” on corporate earnings calls at a rapidly rising rate, in the latest sign of the increased importance investors place on environmental credentials.
Mentions of carbon and associated keywords have tripled over the past three years to about 1,600 per quarter, according to a UBS analysis of earnings call transcripts. Searches for the word in a financial context on Google have also reached an all-time high, according to the Swiss bank.
The increased emphasis on emissions of greenhouse gases such as carbon dioxide comes during a period of swift growth in investments based on factors such as the environment, governance and social impacts. Global sustainable fund assets climbed 18 per cent in the first quarter of 2021 compared with the final three months of 2020 to almost $2tn, led by strong inflows into Europe, Morningstar data show.