On the aftemoon of September 24, 2024, the 4th lecture of"Red Orchard Finance MasterLecture" sponsored by the Department of Finance of the School of Economics andManagement was successfuly held in Conference Room 305 of the East Building ofSiyuan. Associate Professor Lo Lo of Macquarie University Business School gave apresentation on "Carbon Managerial Ability and Climate Risk Exposure". The lecture waspresided over by Lu Chao, Director of the Finance Department of the School ofEconomics and Management, and more than 20 teachers and students of the schoolattended the lecture.

The research shared by Professor Luo examined the relationship between carbonmanagement capability (CMA)and company-level exposure to climate risk using asample of large international companies. The study found that CMA was negativelycorrelated with climate risk exposure, and that companies with high CMA reduced theirexposure by enhancing regulatory compliance, reducing ESG controversies, fosteringcorporate environmental culture, and promoting corporate environmental innovation. TheCMA plays a vital role in driving companies towards more sustainable and responsiblebusiness practices, which in turn leads to better corporate performance and enhancedcorporate reputation. This study innovatively constructs an index of carbon managementcapability at the level of listed companies in major global stock markets and complementsrelevant research on climate risk under an international sample.

In the free exchange session, Song Haozhe from the Department ofAccounting, Lu Chao.Cheng Feiyang, Jin Fujing, Wang Kaiyuan and other teachers and students from theDepartment of Finance discussed the construction process of the enterprise-level carbonmanagement ability measurement index in the report paper, the reliability of usinginternational samples to carry out research, and the future trend of enterprise ESGdevelopment. Mr. Luo brought us cutting-edge research in the field of environment andcorporate finance, vividly demonstrated how to tell a good financial story, and alsoinspired the teachers and students to think about environmental and financial research.