Does climate action attract capital? Evidence from the National Pension Service's investment in Korean firms

초록

This paper examines whether corporate climate action attracts institutional capital, focusing on the National Pension Service (NPS) of Korea. Using firm-level data from 2015-2023, the study tests how carbon performance and sustainability disclosure affect NPS equity holdings. Carbon efficiency is measured by greenhouse gas emissions and energy use relative to peers, while disclosure quality is assessed by report publication and textual updates across years. Results show that the NPS allocates more capital to firms with stronger carbon performance and regularly updated, substantive reports. These findings indicate that environmental outcomes and credible disclosure operate as complementary signals that reduce information asymmetry, making firms more attractive to long-term investors. The study advances climate finance research and offers practical implications for corporate ESG strategies, pension fund stewardship, and sustainable financial policy.

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