Green firms benefited from stronger earnings expectations, while brown companies faced higher costs of capital due to climate risks and divestment.
Brown companies, such as oil producers, coal companies, and high-emissions heavy industries, may have experienced fewer positive surprises.
Paradoxically, once the higher cost of capital has been fully priced in, theory predicts the opposite effect: brown companies should end up earning higher returns.
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In the world of social enterprises, failure is a cringe-worthy moment nobody wants to talk about. But, social entrepreneurs can benefit from their failures.