Topic：Climate Tech

Speaker:

Sean Cao, Associate Professor

University of Maryland, USA

Host:Yu Minggui, Professor

School of Finance, Zhongnan University of Economics and Law (ZUEL)

Innovation Base for Digital Technology and Modern Finance

Time:14:30-15:30, Monday, March 17, 2025

Location：Room 408, South Wenquan Building, ZUEL

Abstract

There is a growing trend of firms applying emerging technologies, such as AI and alternative energies, for climate solutions. This paper provides a systematic analysis of this new economic phenomenon (ClimateTech). We use LLM contextual functions (e.g., dependency parsing) to analyze firm press releases and identify ClimateTech projects. Our findings indicate that early adopters of ClimateTech tend to have strong technological expertise in leadership.ClimateTech concentrates on two different types of technology investment: infrastructure and environmental technology. The former helps firms mitigate risk, as infrastructure can be used for both environmental and other applications, whereas environmental technology is with exclusive purpose. We observe a slightly higher proportion of firms investing in infrastructure (86%) comparing to environment tech (36%). When examining financial value and environmental impact, we find that infrastructure technology generates higher financial returns but has a lower environmental impact. In contrast, environmental technology contributes less to financial value but leads to significant environmental impact. Additionally, we identify an alternative way firms use to enhance financial value through ClimateTech: integrating it into their core products rather than using it for side businesses or image management. Enhanced green products can also increase financial value, though their environmental impact remains mixed.

Speaker

Sean Cao is a tenured Associate Professor in the Department of Accounting at the Robert H. Smith School of Business, University of Maryland, USA. He previously held a dual appointment as a tenured Associate Professor in the Departments of Accounting and Finance at the Robinson College of Business, Georgia State University. Professor Cao’s primary research areas include corporate disclosure and decision-making, as well as data analysis in financial and accounting information (focusing on unstructured data processing and deep learning, among others). His research has been published in top-tier accounting and finance journals such as the Journal of Financial Economics, Journal of Accounting Research, The Accounting Review, Contemporary Accounting Research, and IEEE Computer. His work has been presented at leading research universities, including Stanford University, Cornell University, the University of Virginia, the University of Minnesota, and Pennsylvania State University. Professor Cao has also been invited to participate in seminars hosted by globally renowned companies such as Grant Thornton, Ant Financial, Baidu, and JD.com. He currently serves as a Guest Editor for the Big Data section of the top journal Management Science and is a reviewer for prestigious journals including Review of Financial Studies, Management Science, Contemporary Accounting Research, MIS Quarterly, and Accounting, Organizations and Society.