When Nature Talks, Markets Move: Forecasting the Equity Premium with Eco-Climate Incidents

Zhiyong Li; Weiping Qin

doi:10.1111/fire.70064

When Nature Talks, Markets Move: Forecasting the Equity Premium with Eco-Climate Incidents

Zhiyong Li
, Weiping Qin

Ysgol Busnes Albert Gubay

University College London

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This paper examines the role of eco-climate information, particularly biodiversity risks, in forecasting the U.S. equity premium. Using RepRisk controversy data, we construct indicators for biodiversity, greenhouse gas emissions, and local pollution. Biodiversity indicators emerge as strong predictors of the equity premium, outperforming other eco-climate risks in return predictability and trading performance. The findings highlight the importance of incorporating biodiversity risks into financial decision-making, with implications for investors, policymakers, and the broader financial system.

Iaith wreiddiol	Saesneg
Cyfnodolyn	Financial Review
Dyddiad ar-lein cynnar	5 Meh 2026
Dynodwyr Gwrthrych Digidol (DOIs)	https://doi.org/10.1111/fire.70064
Statws	E-gyhoeddi cyn argraffu - 5 Meh 2026

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10.1111/fire.70064Trwydded: CC BY

When Nature Talks Markets Move Forecasting the Equity Premium With Eco‐ClimateFersiwn derfynol wedi’i chyhoeddi, 1.21 MB

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When Nature Talks, Markets Move: Forecasting the Equity Premium with Eco-Climate Incidents

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