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 language | English |
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Title of host publication | An Integrated Approach to Environmental Management |
Publisher | wiley |
Pages | 255-276 |
Number of pages | 22 |
ISBN (Electronic) | 9781118744406 |
ISBN (Print) | 9781118744352 |
DOIs | |
State | Published - 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