Should investors screen out non-responsible firms from their portfolio, or invest in them and engage with the management? This paper evaluates the relative effectiveness of these exit and voice strategies and uncovers the conditions under which each strategy is most impactful. Using a...

Reducing portfolio carbon footprints (Exit) and voting in favor of climate-related shareholder proposals (Voice) are among the main actions that investors can take to promote an accelerated transition towards a low-carbon economy. This paper studies three important investor groups that can be...