During this ACLE Seminar, Assistant professor José Azar from the University of Navarra and CEPR will talk about his paper ‘The Big Three and Corporate Carbon Emissions Around the World’. This paper examines the role of the “Big Three” (i.e., BlackRock, Vanguard, and State Street Global Advisors) on the reduction of corporate carbon emissions around the world. Using novel data on engagements of the Big Three with individual firms, evidence can be found that the Big Three focus their engagement effort on large firms with high CO2 emissions in which these investors hold a significant stake. Consistent with this engagement influence being effective, a strong and robust negative association between Big Three ownership and subsequent carbon emissions can be observed among MSCI index constituents, a pattern that becomes stronger in the later years of the sample period as the three institutions publicly commit to tackle Environmental, Social, and Governance (ESG) issues.