We analyze an emerging sustainable trend in asset management: the decarbonization of institutional portfolios. By using broad institutional ownership data, we show that investors exhibit herding behavior in the sense of decarbonization. They are inclined to follow their own or other investors' buys in green stocks and sales in brown stocks over adjacent quarters. Beyond that, we find that Hedge Funds as well as Investment Advisors lead the herd by executing trades in the sense of decarbonization. This is in line with expectations that sophisticated investors, who integrate environmental aspects into their investment decision process, are able to attract imitators. For the aspired achievement of market-wide decarbonization, investors leading the herd should be encouraged to further decarbonize their portfolios in order to trigger follow-up trades.

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We use the COVID-19 pandemic period in 2020 as an exogenous shock event to assess in how far climate risks measured by carbon exposure have entered and established themselves in the valuation of global stocks. In addition to descriptive analyses, we conduct cross-sectional panel regressions to assess the influence of carbon intensity levels on return and risk characteristics during and after the shock period. Furthermore, a difference-in-differences model setup allows us to infer whether these influences were significantly different when comparing pre-shock, shock, and post-shock periods. We find that carbon intensity affected returns significantly and negatively during a time of high uncertainty. In fact, high-emitting stocks suffered significantly more compared to the pre-crisis period. However, they could make up for their additional losses in the recovery period. In line with their high-risk exposure towards stranded assets and climate policy uncertainty, carbon-intensive stocks face higher risk levels in more stable economic times, thus justifying a carbon premium.

The concept of solar energy and its applications in present day would come to be one of the solutions to our Nigerian problem of instability and epileptic power supply. In this study, data for mean monthly sunshine hours and global solar radiation for Ikeja, Lagos state capital (6.58 0 N, 3.32 0 E) were obtained from Nigeria Metrological Agency (NiMeT), Oshodi Lagos, Nigeria and spanned 1996 to 2010. The data for global solar radiation were measured using a Gunn-Bellani radiometer. A linear regression correlation model was developed for Ikeja and other surrounding area in southwestern part of Nigeria with similar meteorological conditions. The results of estimated global solar radiation ranged from 5.1 MJm-2 day-1 on average for August and 13.1 MJm-2 day-1 for March for Lagos. The Angstrom constants a and b of Angstrom-type correlation to estimate monthly average global solar radiation was estimated to be 0.25 and 0.63 respectively. The result for global solar radiation were then subjected to statistical tests [MBE, RMSE, MPE] and proved to be good estimates. The value of clearness index was also estimated to range from 0.31 to 0.59 showing Lagos as a partly clear sky city.

We analyze an emerging sustainable trend in asset management: the decarbonization of institutional portfolios. By using broad institutional ownership data, we show that investors exhibit herding behavior in the sense of decarbonization. They are inclined to follow their own or other investors' buys in green stocks and sales in brown stocks over adjacent quarters. Beyond that, we find that Hedge Funds as well as Investment Advisors lead the herd by executing trades in the sense of decarbonization. This is in line with expectations that sophisticated investors, who integrate environmental aspects into their investment decision process, are able to attract imitators. For the aspired achievement of market-wide decarbonization, investors leading the herd should be encouraged to further decarbonize their portfolios in order to trigger follow-up trades.