Role of Environmental, Social, and Governance (ESG) Factors in Financial Investments

Research output: Chapter in Book/Report/Conference proceedingChapter

Abstract

This chapter measures whether investing with Environmental, Social and Governance (ESG) issues in mind has turned into a compelling investment premise for fund managers. For this purpose, a series of market metrics were applied to all of the current ESG-based funds to measure whether they offer potential to satisfy a classical risk/return assessment of their performance. Contrary to studies that paint an utterly favorable picture of ESG investing, the results portrayed in this chapter are mixed. Although their yearly growth and their risk-adjusted returns in relation to the market benchmark used are notable, the same cannot be said of their performance in terms of the risk taken to achieve these returns and with regard to the important systematic risk they contribute.

Original languageEnglish
Title of host publicationAn Integrated Approach to Environmental Management
Publisherwiley
Pages255-276
Number of pages22
ISBN (Electronic)9781118744406
ISBN (Print)9781118744352
DOIs
StatePublished - 1 Oct 2016

Keywords

  • Corporate ethics
  • Corporate governance
  • ERISA plans
  • Environmental
  • Fiduciaries
  • Green investing
  • Responsible investing
  • Sarbanes-Oxley Act
  • Social and governance (ESG) investments
  • Sustainable investing

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