Summary

This research examines climate-focused business alliances, particularly among financial services firms, using empirical data to assess claims by both supporters and critics. Analyzing 11 major alliances and 424 publicly traded financial institutions, we use difference-in-differences and related methods to evaluate the impact of alliance membership. We find that member firms adopt more climate-aligned practices, set emissions targets, reduce emissions, and engage in more pro-climate lobbying, with mixed evidence of increased green financing. There is no evidence of antitrust violations, reduced oil and gas funding, or lower shareholder returns. Participation in multiple alliances boosts climate actions, though with diminishing returns, and we observe some network and peer effects.

View the paper