Governmental and scientific news and insights on investor oriented environmental, social, and governance (ESG) data.

Wolrd Bank Policy Research: How Do Multinationals Report Their Economic, Social, and Environmental Impacts?

This paper examines the role of multinational enterprises in sustainability reporting. The study assesses how multinational enterprise status correlates with a company's average disclosure rate and probability of reporting on economic, labor and social, environmental, and governance indicators. It uses a unique data set that offers company-level information on sustainability reporting from the Global Reporting [...]

By | 2017-12-19T14:00:41+00:00 December 19th, 2017|ESG, Indicators, International|0 Comments

The Effects of Environmental, Social and Governance Disclosures and Performance on Firm Value: A Review of the Literature in Accounting and Finance

This paper not only attempts to survey the burgeoning literature on environmental, social and governance disclosures and performance and their effects on firm value, but its focus also lies on highlighting stylised observations coming from the most recent work that has not yet become part of the ‘conventional wisdom’ in the field. In addition, it [...]

By | 2017-11-18T13:01:08+00:00 November 18th, 2017|ESG, Firm Value, Indicators, Investors|0 Comments

Investment Professionals’ Use of Corporate Social Responsibility Disclosures

We conduct an experiment to examine investment professionals’ use of corporate social responsibility (CSR) disclosures when making personal investment decisions or investment recommendations to clients. We predict and find that investment professionals are more willing to personally invest and recommend investment to a client when a firm discloses positive CSR performance than when it makes [...]

By | 2017-09-01T09:07:36+00:00 September 1st, 2017|CSR, ESG, Firm Value, Indicators, Investors|0 Comments

Corporate Environmental Policy and Shareholder Value: Following the Smart Money

We examine the value consequences of corporate social responsibility through the lens of institutional shareholders. We find a sharp asymmetry between corporate policies that mitigate the firm’s exposure to environmental risk and those that enhance its perceived environmental friendliness (“greenness”). Institutional investors shun stocks with high environmental risk exposure, which we show have lower valuations [...]

By | 2017-09-01T09:04:03+00:00 September 1st, 2017|Environmental, Firm Value, Indicators, Investors|0 Comments

Bloomberg and the TCFD – final recommendations

“Increasing transparency makes markets more efficient, and economies more stable and resilient.” —Michael R. Bloomberg, Chair of the TCFD To help identify the information needed by investors, lenders, and insurance underwriters to appropriately assess and price climate-related risks and opportunities for the companies, the Financial Stability Board established an industry-led task force: the Task Force [...]

By | 2017-06-29T19:12:44+00:00 June 29th, 2017|ESG, Firm Value, Indicators, Integrated Reporting, Investors, Risk|0 Comments

Two Novel Indices of Climate-Related Financial Disclosure

Market-based solutions to climate change are widely advocated by financial actors and policy-makers in order to foster a smooth transition to a low-carbon economy. A first important limiting factor to this approach is widely recognized to be the imperfect information on investors portfolio exposure to climate related risks. While better disclosure of climate-relevant information is [...]

By | 2017-06-01T09:12:55+00:00 June 1st, 2017|Financial, Firm Value, Indicators, Investors, Risk|0 Comments

Harvard: Stock Price Synchronicity and Material Sustainability Information

We examine if, and under what conditions, disclosure of sustainability information identified as investor relevant by market-driven innovations in accounting standard-setting, is associated with stock prices reflecting more firm-specific information and thereby lower synchronicity with market and industry returns. We find that firms voluntarily disclosing more sustainability information, identified as material by the Sustainability Accounting [...]

By | 2017-05-23T10:38:07+00:00 May 23rd, 2017|ESG, Firm Value, Indicators, Investors, Risk|0 Comments

EY-analysis: Is your non financial performance revealing the true value of your business to investors?

EY member firms are able to conclude from several years of research of ESG reporting that there is a global trend toward increased interest in nonfinancial information on the part of investment professionals. But the question we continue to seek to answer is whether ESG information is, ultimately, influencing investor decisions. In each of the [...]

By | 2017-05-23T10:34:49+00:00 May 23rd, 2017|ESG, Firm Value, Indicators, Investors, Risk|0 Comments

Value Relevance of Corporate Donations

This paper examines whether corporate donations have an impact on a firm’s market value. We analyse 52,199 firm year observations on companies from 42 countries between 1998 and 2014. The regression model used to investigate the value relevance of corporate donations is the Collins, Pincus, & Xie (1999) adaptation of the Ohlson (1995) model. Our [...]

By | 2017-05-23T10:26:43+00:00 May 23rd, 2017|Firm Value, Indicators, Investors|0 Comments

Nasdaq Nordic and Baltic exchanges launch ESG Reporting Guide

The 23.03.2017 Nasdaq announced that its Nordic and Baltic exchanges in Stockholm, Helsinki, Copenhagen, Iceland, Tallinn, Riga and Vilnius have issued a voluntary support program on environmental, social and governance (ESG) disclosure to support their listed companies. “Many of the companies listed on the Nasdaq Nordic and Baltic exchanges are already global leaders in sustainability [...]

By | 2017-03-29T11:26:38+00:00 March 29th, 2017|ESG, Indicators, International, Investors|0 Comments