In this dissertation, I develop three essays on sustainable finance. In Chapter 1, I examine whether and why corporate water management affects the valuations of manufacturing firms. I document that good water management is associated with an increase in firm value and a decrease in operating costs during droughts, which suggests that water management allows firms to mitigate the cost of droughts. In Chapter 2, my coauthor and I examine the real and financial effects of a regulation that mandates publicly listed firms to disclose their carbon emissions in a standardized way in their annual reports. We show that the disclosure regulation affects the future costs of high emissions and leads to a significant reduction in firm-level carbon emissions. In Chapter 3, we show that a small university endowment can elicit greater corporate carbon emissions disclosure through shareholder engagement.