## Limits to Private Climate Change Mitigation

_IMF Working Papers, April 29, 2021_

## Source details

**Canonical URL:** [Limits to Private Climate Change Mitigation](https://www.imf.org/en/publications/wp/issues/2021/04/29/limits-to-private-climate-change-mitigation-50297)

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- [Markdown version](/en/publications/wp/issues/2021/04/29/limits-to-private-climate-change-mitigation-50297/index.md)
- [Structured JSON version](/en/publications/wp/issues/2021/04/29/limits-to-private-climate-change-mitigation-50297/index.json)
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## Bibliographic details
- Authors: Dalya Elmalt, Divya Kirti, Deniz O Igan
- Published: April 29, 2021
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513582504.001

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### Summary and central finding
- The paper examines the link between emissions growth and ESG scores using firm-level data for the largest emitters worldwide.
- Main empirical result: at best a weak relationship between ESG scores and emissions growth.
- Firms with better ESG scores display somewhat slower emissions growth, but:
  - The relationship is substantially attenuated and no longer statistically significant when analyses are limited to within-country variation.
  - The relationship is substantially attenuated and no longer statistically significant when analyses are limited to within-firm variation.
- Conclusion: limited scope for sustainable investing strategies conditioned solely on ESG indicators to meaningfully help mitigate climate change.

### Implications for policy and practice
- Sustainable investing based only on ESG indicators is unlikely to achieve climate change goals on its own.
- The findings underscore the need to continue building consensus toward effective economy-wide policies to address climate change.

### Subject areas and keywords
- Subject: Climate change, Climate finance, Corporate social responsibility, Economic sectors, Environment, Greenhouse gas emissions
- Keywords: Climate change, climate change goal, climate change mitigation, Climate finance, Corporate social responsibility, emissions growth, ESG indicator, ESG score, Global, Greenhouse gas emissions

### Publication and document metadata
- Pages: 48
- Volume: 2021
- Issue: 112
- Series: Working Paper No. 2021/112
- DOI: https://doi.org/10.5089/9781513582504.001
- Stock No: WPIEA2021112
- ISBN: 9781513582504
- ISSN: 1018-5941
- Authors: Dalya Elmalt, Divya Kirti, Deniz O Igan
- Publication date: April 29, 2021

*IMF Working Paper: "Limits to Private Climate Change Mitigation" (Working Paper No. 2021/112).*

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## Content in this bundle

- **Working Paper**
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  - [Working Paper (PDF)](/-/media/files/publications/wp/2021/english/wpiea2021112-print-pdf.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2021/04/29/limits-to-private-climate-change-mitigation-50297_