Carbon emissions and the bank-lending channel
File(s)
Accepted version
Author(s)
Kacperczyk, Marcin
Peydro, Jose-Luis
Type
Journal Article
Abstract
We study how firm-level carbon emissions affect bank lending and real outcomes in a sample of global
firms with syndicated loans. We exploit bank-level climate commitments as firm-level shocks to lending
relationships, using firms' prior credit exposures to identify credit supply effects. Firms with higher
emissions that previously borrowed from committed banks receive less bank credit. Evidence from lending
volumes, prices, and within-firm-time loan-level data indicates a supply-side shift away from high-emission
firms, not explained by borrower risk. Affected firms reduce debt, leverage, size, and investment, yet we
find no reduction in future emissions, instead documenting evidence consistent with greenwashing.
firms with syndicated loans. We exploit bank-level climate commitments as firm-level shocks to lending
relationships, using firms' prior credit exposures to identify credit supply effects. Firms with higher
emissions that previously borrowed from committed banks receive less bank credit. Evidence from lending
volumes, prices, and within-firm-time loan-level data indicates a supply-side shift away from high-emission
firms, not explained by borrower risk. Affected firms reduce debt, leverage, size, and investment, yet we
find no reduction in future emissions, instead documenting evidence consistent with greenwashing.
Date Acceptance
2026-08-03
Citation
The Review of financial studies
ISSN
0893-9454
Publisher
Oxford University Press
Journal / Book Title
The Review of financial studies
Copyright Statement
Copyright This paper is embargoed until publication. Once published the author’s accepted manuscript will be made available under a CC-BY License in accordance with Imperial’s Research Publications Open Access policy (www.imperial.ac.uk/oa-policy).
License URL
Publication Status
Accepted